British Pound: USD/GBP (GBP=X) showing signs of confusion

British Pound: USD/GBP (GBP=X) showing signs of confusion

British Pound: USD/GBP (GBP=X) showing signs of confusion

The British pound went back and forth during the trading session on Friday, showing signs of confusion but quite frankly I think a lot of traders don’t to put money into the market ahead of the weekend as headlines could come out and cause a major On Monday morning in Asia. All things being equal though, it’s very likely that the market will continue to build this flag and that eventually go much higher. All things being equal, the market is currently hovering above the 200 day EMA, which of course is a large indicator for the longer-term trend.

The 50 day EMA is underneath and it looks as if it is trying to break above the 200 day EMA, and therefore it’s a sign that there is even more bullish pressure underneath. The pole of the flag measures for a move to the 1.38 or so, but if we can break above the 1.30 level, it’s likely that the market will then test the 1.33 handle above.

At this point, market participants continue to see a lot of noise in the market and of course headline risk. However, it looks as if the fact that Nigel Farage has already stated that the Brexit Party isn’t going to go against the Tories, and that is bullish in the sense that Boris Johnson will probably be able to get his Brexit plan through Parliament. Quite frankly, market participants are more interested in getting certainty than any particular outcome at this point.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1.31.

The projected lower bound is: 1.27.

The projected closing price is: 1.29.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 87.8549. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 62.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 19 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 78. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.002 at 1.292. Volume was 96% below average (consolidating) and Bollinger Bands were 68% narrower than normal.

Open High Low Close Volume___
1.290 1.293 1.290 1.292 4,134

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.26 1.27
Volatility: 5 11 10
Volume: 87,996 107,788 134,557

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FOREX GBP= is currently 1.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of GBP= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GBP= and have had this outlook for the last 25 periods.

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