British Pound: USD/GBP (GBP=X) UK Parliament delays vote on Johnson’s Brexit deal
The British Pound may gap lower at the start of this week’s trading session. Over the weekend, the UK Parliament voted to delay a definitive vote on Prime Minister Boris Johnson’s Brexit deal. This past week Sterling has been picking up gains on hopes that his revised agreement, which builds on the foundations negotiated by former PM Theresa May, could pass in the House of Commons.
Since a vote on his deal has been put on hold, Mr Johnson is required by law to seek a delay in Brexit as outlined in the Benn Act. This would push the deadline for the divorce back by four months if the European Union consents. More to the point, for the British Pound this will likely result in near-term selling pressure as investors have to adjust their positioning to reflect updated fundamentals, unwinding recent exposure.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1.25.
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 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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.
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 88.7966. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 73.43. This is where it usually tops. 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 47 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 111.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.003 at 1.294. Volume was 98% below average (consolidating) and Bollinger Bands were 147% wider than normal.
Open High Low Close Volume___
1.292 1.296 1.291 1.294 2,701
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.27 1.24 1.27
Volatility: 16 12 10
Volume: 108,703 114,474 141,389
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 1.8% 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 5 periods. Our momentum oscillator is currently indicating that GBP= is currently in an overbought condition.
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