British Pound: USD/GBP (GBP=X) to rally as the risk of ‘no deal’ fades
One of the UK’s most recognised high-street lenders have said they expect Pound Sterling to recover over coming weeks as the prospect of a ‘no deal’ Brexit fades.
The call by Lloyds Bank provides some relief to those looking for a recovery in the value of the Pound owing to the poor August the currency has endured; it has fallen against a host of rivals as markets increased their assumption for a ‘no deal’ Brexit to transpire in March 2019.
The Pound has continued its downtrend, with the creation of lower highs and lower lows providing a clear clue that the short-term trend is expected to persist.
That means a break above $1.2909 would be required to point towards a stronger rebound. However, that would be perceived as a signal of a retracement of the near-term decline from $1.3214, rather than a wider reversal signal.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.31.
The projected upper bound is: 1.29.
The projected lower bound is: 1.26.
The projected closing price is: 1.27.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 0 white candles and 9 black candles for a net of 9 black candles. During the past 50 bars, there have been 19 white candles and 30 black candles for a net of 11 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 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 16.6245. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 17 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 23.91. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 32 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 16 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 7 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.000 at 1.276. Volume was 94% below average (consolidating) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
1.277 1.279 1.275 1.276 10,364
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.29 1.32 1.36
Volatility: 5 8 9
Volume: 148,336 167,250 156,659
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 6.0% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of GBP= (mildly bearish). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 19 periods. Our momentum oscillator is currently indicating that GBP= is currently in an oversold condition.
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