British Pound: USD/GBP (GBP=X) tumbles after Brexit deadlock holds
GBP/USD has started the week in bearish fashion, with the inability for the UK and EU to find a positive conclusion to negotiations highlighting the potential for further downside in the near term.
The path for the pound will be determined by the outlook for negotiations and ultimately the ability or inability to reach a positive conclusion. For now, the failure to agree ahead of the upcoming EU summit means markets are likely to have a more bearish short-term outlook. Look out for the Fibonacci support levels to hold up any such downside.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.31.
The projected upper bound is: 1.34.
The projected lower bound is: 1.30.
The projected closing price is: 1.32.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white 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 50.7022. This is not an overbought or oversold reading. The last signal was a sell 1 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 54.98. 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 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 67. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.000 at 1.315. Volume was 82% below average (consolidating) and Bollinger Bands were 12% narrower than normal.
Open High Low Close Volume___
1.315 1.318 1.314 1.315 30,865
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.31 1.30 1.35
Volatility: 8 9 9
Volume: 172,111 172,269 170,022
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 2.5% below its 200-period moving average and is in an upward 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 bullish on GBP= and have had this outlook for the last 4 periods.
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