British Pound: USD/GBP (GBP=X) trying to reach towards the 1.30 level
The British pound rallied a bit during the trading session on Tuesday, reaching the highs of the previous couple of sessions, and now looks to be set on trying to reach towards the 1.30 level. This is a market that of course has a lot to deal with, not the least of which would be extreme US dollar strength. Nonetheless, it’s very likely that the market will find a bit of trouble in that area but recovering 1.30 would of course be a strong sign.
If that’s going to be the case, the market then goes looking towards the 1.32 handle, and a breakout above their opens up the door towards the 1.35 level. This is a market that continues to be very noisy and of course with the next couple of days featuring Jerome Powell speaking in front of Congress, there will be a lot of movement when it comes to the US dollar. Ultimately, there shouldn’t be too much said to spook the markets, but you never know as anything is possible.
If the US dollar suddenly strengthens, then obviously will have its effect over here as well. Alternately, if he says something to suggest weakness, then it’s very likely the pair will roll over. Nonetheless, I still believe that the downside is somewhat limited, and that buyers will return given enough time. This is a market that certainly looks as if it is trying to find its bottom, so given enough time I would not be surprised at all to see the 1.30 level retaken. To the downside, the market breaks down below the bottom of the last couple of trading sessions, then the market could go down to the 1.28 handle.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.32.
The projected lower bound is: 1.27.
The projected closing price is: 1.30.
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 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 39.3600. 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 44.87. 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 sell 41 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 -66. This is not a topping or bottoming area. The last signal was a buy 1 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 up 0.000 at 1.296. Volume was 96% below average (consolidating) and Bollinger Bands were 33% narrower than normal.
Open High Low Close Volume___
1.295 1.296 1.294 1.296 3,721
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.31 1.27
Volatility: 12 10 9
Volume: 97,530 98,439 112,990
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 2.1% above its 200-period moving average and is in an downward trend. Volatility is 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 23 periods.