USD/GBP (GBP=X) no progress in Brexit negotiations
The Pound rallied past 1.3200 against its American rival last Friday but wasn’t enough to trim weekly losses. The GBP/USD pair recovered from a fresh 2018 low of 1.3049 as UK Q1 GDP was revised higher on the back of less weak construction activity, from 0.1% to 0.2%.
The upward revision increased the odds of an August rate hike, further boosting the Pound. In the Brexit front, the EU Summit ended without progress, as the European Council Tusk issued a “last call” to the UK to as the most difficult issues remained unsolved, given than UK PM May still can’t agree with her cabinet on how the future relationship with the EU will be. As the clock keeps ticking toward the effective divorce in March next year, the Pound will find a hard time to attract investors.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 1.34.
The projected upper bound is: 1.33.
The projected lower bound is: 1.30.
The projected closing price is: 1.32.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 28 black candles for a net of 7 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 44.6950. 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 41.52. 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 1 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 -39. This is not a topping or bottoming area. The last signal was a buy 1 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 0 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.001 at 1.320. Volume was 99% below average (consolidating) and Bollinger Bands were 13% narrower than normal.
Open High Low Close Volume___
1.318 1.321 1.316 1.320 2,333
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.32 1.34 1.36
Volatility: 10 8 9
Volume: 159,271 158,976 149,411
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 2.9% below its 200-period moving average and is in an downward 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 moderate flows of volume out of GBP= (mildly bearish). Our trend forecasting oscillators are currently bearish on GBP= and have had this outlook for the last 5 periods.
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