British Pound: USD/GBP (GBP=X) staled at $1.28

British Pound: USD/GBP (GBP=X) staled at $1.28

British Pound: USD/GBP (GBP=X) staled at $1.28

The GBP/USD pair continues to edge above the 50-day SMA ($1.2774).

However, gains above $1.28 have proven too much to sustain, raising the risk of a pullback. A close above $1.28 opens the way to $1.284 and $1.2934, with the 100-day SMA at $1.2896 also a possible area of resistance. Yesterday’s weakness found support at $1.27, and if this is broken, $1.2635 comes into view.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 1.30.

The projected lower bound is: 1.25.

The projected closing price is: 1.27.

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 24 white candles and 26 black candles for a net of 2 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 83.2244. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 21 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 51.97. 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 103 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 84. This is not a topping or bottoming area. The last signal was a sell 0 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 16 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.004 at 1.275. Volume was 11% below average (neutral) and Bollinger Bands were 39% narrower than normal.

Open High Low Close Volume___
1.279 1.280 1.273 1.275 166,859

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.27 1.28 1.31
Volatility: 11 11 10
Volume: 143,980 190,283 175,778

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 2.9% 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 7 periods.

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