British Pound: USD/GBP (GBP=X) slips as dollar hits 29-month high
The US dollar remained steady as it climbed against a handful of currencies, hitting a 29-month high as markets priced in a lower chance of further Federal Reserve Rate cuts in the coming months. The US Markit manufacturing PMI also provided some support for the US Dollar, edging up to a five-month high in September.
The sector saw faster increases in both new business and output. Markit’s Chief Business Economist, Chris Williamson said: “News of the PMI hitting a five-month high brings a sigh of relief, but manufacturing is not out of the woods yet.
The September improvement fails to prevent US goods producers from having endured their worst quarter for a decade. Given these PMI numbers, the manufacturing recession appears to have extended into its third quarter.” Meanwhile, in the run-up to the Halloween Brexit deadline, the UK manufacturing sector rebooted Brexit preparations, pushing the manufacturing PMI up to a four-month high of 48.3.
Looking ahead to Wednesday, if September’s construction PMI shows the construction sector remained mired in contraction territory, the pound could fall against the US dollar.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.25.
The projected lower bound is: 1.21.
The projected closing price is: 1.23.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.9602. This is not an overbought or oversold reading. The last signal was a buy 0 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 46.18. 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 34 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 -100. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.001 at 1.229. Volume was 92% below average (consolidating) and Bollinger Bands were 14% narrower than normal.
Open High Low Close Volume___
1.230 1.231 1.228 1.229 9,968
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.24 1.23 1.27
Volatility: 8 10 9
Volume: 100,815 116,238 144,002
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.
FOREX GBP= is currently 3.4% below 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 27 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.