USD/GBP (GBP=X) Pares Monday’s Losses
• UK construction PMI betters expectations and provides a minor boost on Tuesday.
• A weaker tone around the USD provides an additional boost but fails to lift it further.
• Brexit uncertainties seemed to be the only factor keeping a lid on any further up-move.
The GBP/USD pair struggled to build on the UK data-led bullish momentum and has now retreated around 40- pips from an intraday day high level of 1.3207.
Today’s better than expected UK construction PMI, coming in at 53.1 for June, added to yesterday’s upbeat UK manufacturing PMI and provided a minor boost to the British Pound.
This coupled with a modest US Dollar retracement provided an additional boost and assisted the pair to reverse all of its losses recorded on the first trading day of the week.
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 black body occurred (because prices closed lower 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 20 white candles and 29 black candles for a net of 9 black 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.
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 62.4171. This is not an overbought or oversold reading. The last signal was a buy 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 42.44. 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 3 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 -12. This is not a topping or bottoming area. The last signal was a buy 3 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 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.000 at 1.319. Volume was 96% below average (consolidating) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume___
1.319 1.320 1.319 1.319 7,207
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: 156,031 159,399 149,765
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 high as compared to the average volatility over the last 10 periods. 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 7 periods.
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