British Pound: USD/GBP (GBP=X) unchanged after mixed job numbers
GBP/USD is steady in the Tuesday session. In the North American session, the pair is trading at 1.3265, down 0.09% on the day. There are no major U.S. events on the schedule. British employment numbers were mixed. On Wednesday, the U.K. releases a host of inflation indicators, led by CPI. In the U.S., the Federal Reserve winds up its monthly policy meeting and will release a rate statement.
British employment numbers were a mix on Tuesday. Wage growth continues to impress, posting a gain of 3.4% for a third successive month. The unemployment rate dipped to 3.9%, its lowest level since 1975. However, unemployment claims jumped to 27 thousand, marking a 10-month high. All in all, the employment picture remains solid, despite the turmoil of Brexit and the political and economic uncertainties that lie ahead.
The Brexit saga took an unusual twist on Tuesday, as a parliamentary vote on the withdrawal agreement has apparently been shelved. House Speaker John Bercow ruled that the government could not bring the agreement to a vote, unless it was substantially different than the text that had already been voted on twice. This ruling is another blow to Prime Minister May, whose authority has been badly shaken by the recent votes in parliament.
May plans to go to Brussels on Thursday with cap in hand and request an extension of Article 50, the mechanism for the Brexit process. It remains unclear how long an extension May is looking for from the Europeans, who have not concealed their utter exasperation at Britain’s inability to get its Brexit act together. With no end in sight to the confusion and chaos surrounding Brexit, we could see further volatility from the pound.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.35.
The projected lower bound is: 1.30.
The projected closing price is: 1.32.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 26 black candles for a net of 4 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 58.2176. This is not an overbought or oversold reading. 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 54.96. 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 14 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 50. This is not a topping or bottoming area. The last signal was a sell 13 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 3 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.005 at 1.322. Volume was 56% below average (consolidating) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
1.327 1.328 1.321 1.322 78,428
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.31 1.30
Volatility: 16 11 11
Volume: 172,998 172,549 178,809
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 1.9% 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.
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