British Pound: USD/GBP (GBP=X) UK Parliament Debates Exit Bill

British Pound: USD/GBP (GBP=X) UK Parliament Debates Exit Bill

British Pound: USD/GBP (GBP=X) UK Parliament Debates Exit Bill

The House of Commons is in the process of debating Johnson’s exit agreement with the EU and the PM’s deal is expected to turn into British law by the end of the week.

The opposition has brought forward several amendments but with Johnson now holding a majority, the process should be fairly straight forward. Johnson has vowed to take the UK out of the EU and this brings him one step closer to delivering on his promise.

The markets were volatile during the Asian session after reports of a missile strike on US forces by Iran. Gold prices rallied to seven-year highs while the Japanese yen and Swiss franc rallied on their safe-haven status. However, much of the gains have reversed since then. US President Trump is expected to comment on the situation later in the day.

Technical Analysis

The dollar has been dominating since the start of the European session and the trade-weighted index (DXY) is nearing range resistance.

DXY has been trading within a range since the last week of December and is testing the upper bound of the range for the fourth time. A bullish break will tend to weigh on the majors, and is likely to drive GBP/USD lower.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1.33.

The projected lower bound is: 1.29.

The projected closing price is: 1.31.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 24 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 34.1317. This is not an overbought or oversold reading. The last signal was a sell 3 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 51.18. 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 sell 16 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 25. This is not a topping or bottoming area. The last signal was a buy 9 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.003 at 1.309. Volume was 10% above average (neutral) and Bollinger Bands were 5% narrower than normal.

Open     High      Low     Close     Volume___
1.312 1.317 1.308 1.309 115,668
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 1.31 1.30 1.27
Volatility: 11 9 9
Volume: 90,467 97,419 119,772

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 3.2% above 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 6 periods.

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