USD/GBP (GBP=X) How low?
Based on the hope that Brexit would bring some clarity on the political front, we have forecasting a better tone for the pound post-March 2019. Recent events, however, suggest an increased chance of the UK remaining in a quasi-customs union arrangement with the EU until the UK can put in place a workable alternative. This could mean that political uncertainty continues well beyond next March.
Our forecasts that GBP will recover some ground in a 9-12 month view may therefore prove to be optimistic. That said, we see little reason to question our view that the pound can fall further in the coming months.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 1.33.
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 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 18 white candles and 31 black candles for a net of 13 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 10.9480. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 28.23. This is where it usually bottoms. 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 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 -129.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 15 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 2 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.000 at 1.317. Volume was 97% below average (consolidating) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
1.317 1.318 1.317 1.317 5,112
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.33 1.36 1.36
Volatility: 5 7 9
Volume: 147,146 157,165 147,750
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 3.1% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on GBP= and have had this outlook for the last 0 periods. Our momentum oscillator is currently indicating that GBP= is currently in an oversold condition.
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