British Pound: USD/GBP (GBP=X) showing signs of support at the 1.28 level

British Pound: USD/GBP (GBP=X) showing signs of support at the 1.28 level

British Pound: USD/GBP (GBP=X) showing signs of support at the 1.28 level

The British pound has pulled back a bit during the trading session on Tuesday, showing signs of support at the 1.28 level. The market bouncing from there is a good sign, as we continue to see reasons for value hunting.

The British pound has pulled back against the US dollar during early trading on Tuesday but has also found enough support at the 1.28 level to turn things around and show signs of life. By doing so it should send this market back towards the 1.30 level.

That is a large, round, psychologically significant number that will continue to push the market around. As Brexit continues to steal headlines, this will have a major influence on this pair. The 200 day EMA sits just below which of course is supportive, and therefore I believe that traders are going to continue to look at these pullbacks as short-term buying opportunities based upon value.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1.26.

The projected upper bound is: 1.31.

The projected lower bound is: 1.26.

The projected closing price is: 1.29.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

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 30.7310. This is not an overbought or oversold reading. The last signal was a sell 4 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 64.03. 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 5 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 37. This is not a topping or bottoming area. The last signal was a sell 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 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.286. Volume was 13% below average (neutral) and Bollinger Bands were 131% wider than normal.

Open     High      Low     Close     Volume___
1.286 1.290 1.280 1.286 101,731
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.29 1.24 1.27
Volatility: 8 12 10
Volume: 117,761 116,240 139,879

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 1.2% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 11 periods.

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