British Pound: USD/GBP (GBP=X) slightly lower

British Pound: USD/GBP (GBP=X) slightly lower

British Pound: USD/GBP (GBP=X) slightly lower

The British pound has rolled over a bit during the trading session on Wednesday, as the 1.22 level has offered a significant amount of resistance yet again. That being said though, the 1.2250 level is also resistance, and of course we have the 50 day EMA above which is painted in red should cause some issues as well. Remember, the Brexit is nowhere near being figured out, so I do believe at this point it’s only a matter of time before you start selling again.

The most recent bounce of course has been so unsubstantial but the reality is that it’s a bounce from the 1.20 GBP level, which of course is a very significant scenario. That being said though, I think it’s only a matter of time before we break down below the 1.20 level and go much lower. At that point I suspect that were probably going to be looking towards the 1.15 GBP level, but that should.

I think that as we raced towards a “no deal Brexit”, it’s only a matter time before we see a certain amount of a “flush lower” in this market and a bit of panic. At the point of capitulation, there’s probably a great opportunity to pick up British pound “on the cheap” as even the worst case scenario will eventually stabilize the market in the sense that at least at that point we know where we are going forward. We are a long way away from that though, so I simply look for rallies to sell.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1.23.

The projected lower bound is: 1.20.

The projected closing price is: 1.21.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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.

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 67.8663. This is not an overbought or oversold reading. The last signal was a buy 13 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 39.66. 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 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 22. This is not a topping or bottoming area. The last signal was a buy 13 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 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.212. Volume was 99% below average (consolidating) and Bollinger Bands were 27% narrower than normal.

Open     High      Low     Close     Volume___
1.213 1.214 1.212 1.212 1,354
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 1.21 1.24 1.28
Volatility: 7 8 9
Volume: 102,729 115,594 155,842

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 5.1% below its 200-period moving average and is in an downward 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 bearish on GBP= and have had this outlook for the last 32 periods.

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