British Pound: USD/GBP (GBP=X) UK Parliament votes to reject a no-deal Brexit
Pound Sterling is the best performing major currency in mid-week trade with markets holding the view a solution to the current chronic Brexit uncertainty is achievable, with talk of the Attorney General reviewing his guidance being of particular interest to us from a currency perspective.
It was the guidance of Attorney General Geoffrey Cox that sunk Sterling, and Prime Minister May’s hopes of seeing her deal pass through parliament, when on Tuesday he said the UK can still be caught in the Irish backstop indefinitely despite recent changes to the Brexit deal.
But, we are hearing Cox could alter his view.
The BBC’s Assistant Political Editor Norman Smith has said on Wednesday Attorney General Geoffrey Cox had further legal advice which might help Prime Minister Theresa May win over lawmakers to her Brexit deal.
“Am hearing the Attorney General has further legal advice that might help (the prime minister) and win over Brexiteers,” Smith said on Twitter.
Cox’s advice was crucial in firming up DUP and Conservative Brexiteer opposition to the prime minister’s deal – “any softening could enable them to get back on board,” says Smith.
The news coincides with a strong recovery in the value of the Pound: the Pound-to-Euro exchange rate is quoted 0.88% higher on the day at 1.1675, the week’s low is at 1.1524, the high is at 1.1792. The Pound-to-Dollar exchange rate is at 1.32, the week’s low is at 1.2960, the high at 1.3287.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.36.
The projected lower bound is: 1.31.
The projected closing price is: 1.34.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 2 white candles and 7 black candles for a net of 5 black candles. During the past 50 bars, there have been 24 white candles and 24 black candles.
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 70.3991. This is not an overbought or oversold reading. The last signal was a buy 2 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 63.35. 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 9 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 92. This is not a topping or bottoming area. The last signal was a sell 8 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 4 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.027 at 1.334. Volume was 4% above average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
1.307 1.338 1.306 1.334 190,012
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.30 1.30
Volatility: 15 11 11
Volume: 183,510 171,963 178,817
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 2.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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