British Pound: USD/GBP (GBP=X) shows signs of life yet again

British Pound: USD/GBP (GBP=X) shows signs of life yet again

British Pound: USD/GBP (GBP=X) shows signs of life yet again

The British pound initially fell during the trading session on Tuesday but then turned around at the 50 day EMA to rally yet again. At this point though, it is only a matter of time until we run into exhaustion and major resistance above.

The British pound initially pulled back during the trading session on Tuesday, reaching towards the 50 day EMA before turning around and showing signs of strength yet again. Looking at this chart, a pullback should be coming rather soon, but I would anticipate that the 1.25 level would offer some type of resistance or perhaps even a bit of a “ceiling” in this market.

All things being equal it’s very likely that we will continue to see signs of exhaustion going forward. After all, the Brexit is still a massive overhang, because quite frankly nobody really knows how that’s going to play out.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.25.

The projected lower bound is: 1.22.

The projected closing price is: 1.24.

Candlesticks

A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 89.4158. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 6 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 58.55. 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 buy 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 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 buy 19 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed up 0.001 at 1.236. Volume was 98% below average (consolidating) and Bollinger Bands were 6% narrower than normal.

Open     High      Low     Close     Volume___
1.235 1.236 1.234 1.236 2,410
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.22 1.23 1.27
Volatility: 11 10 9
Volume: 112,293 116,082 149,965

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 3.0% below 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 12 periods.

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