Will British Pound: USD/GBP (GBP=X) rise back above 1.30?
The US Federal Reserve have already scaled back on their plans to hike interest rates in 2019 and whilst some commentators do believe that we will see the US currency weaker in the future if they move to cut rates anytime soon, what might be more likely is by holding off from any decision, the US dollar finds favour.
The US currency has the highest interest rates on offer of any leading economy at 2.25-2.5 %, which makes holding the currency attractive by investors. Following a recent run of positive data from the US, with annualised GDP (Gross Domestic Product) coming in much better than expected at 3.2% versus the 2.5%, the US economy is performing well.
There are some key events this week which could prove pivotal for GBP/USD exchange rates. I think the pound will struggle and the US dollar could find some further form, anchoring the pair below the 1.30 marker.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.30.
The projected upper bound is: 1.31.
The projected lower bound is: 1.27.
The projected closing price is: 1.29.
A white body occurred (because prices closed higher 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 20 white candles and 28 black candles for a net of 8 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 33.9789. This is not an overbought or oversold reading. The last signal was a buy 1 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 39.13. 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 42 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 -81. This is not a topping or bottoming area. The last signal was a buy 0 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 27 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.002 at 1.293. Volume was 43% below average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
1.293 1.295 1.290 1.293 95,824
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.31 1.30
Volatility: 4 10 10
Volume: 159,257 174,411 178,771
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 0.2% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 19 periods.