USD/GBP (GBP=X) Forecast to 1.3200

USD/GBP (GBP=X) Forecast to 1.3200

USD/GBP (GBP=X) Forecast to 1.3200

From a technical perspective, the pair remains close to its immediate strong hurdle near mid-1.3400s, which if cleared decisively would suggest a bullish breakout and accelerate the recovery move. Above the mentioned barrier, the pair is likely to surpass the key 1.3500 psychological mark and head towards an important congestion area near the 1.3550-1.3600 region.

Alternatively, retracement from current resistance zone, leading to a subsequent break back below the 1.3400 handle might prompt some additional long-unwinding and drag the pair further towards the ascending trend-channel support, currently near the 1.3350-45 region. A follow-through weakness might negate prospects of any further recovery and turn the pair vulnerable to break below the 1.3300 handle and head towards retesting its next major support near mid-1.3200s.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 1.36.

The projected upper bound is: 1.36.

The projected lower bound is: 1.32.

The projected closing price is: 1.34.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 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 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 76.9880. This is not an overbought or oversold reading. The last signal was a sell 0 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 44.14. 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 5 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 93. This is not a topping or bottoming area. The last signal was a buy 6 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

FOREX GBP= closed down -0.000 at 1.342. Volume was 97% below average (consolidating) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
1.341 1.347 1.337 1.342 4,900

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.37 1.36
Volatility: 6 8 10
Volume: 158,857 157,188 145,718

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 1.3% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of GBP= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 32 periods.

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