British Pound: GBP/USD (GBP=X) Analysis and Trade Ideas – Live Trading News
British Pound Outlook
The British Pound advanced against the Euro and a host of other major currencies on news of progress in post-Brexit trade negotiations, however renewed financial market turbulence following the announcement of new major lockdowns in Europe has pushed the Dollar higher across the board.
This safe-haven driven demand for the Dollar could continue over coming days say analysts. “The rush for the exits will continue for the time being. The impressive dive in European markets over the past few days has revealed how dire sentiment is towards this part of the world, with already weak GDP forecasts likely being hastily revised yet lower thanks to the return of lockdown policies.
The developments on Brexit are therefore providing some welcome downside insurance for the Pound which has in the past proven highly sensitive to covid-19 developments: the Pound’s lowest point of 2020 against both the Euro and Dollar was reached in the February-March period when markets melted in response to the panic triggered by the first wave of covid-19 infections.
The UK currency therefore remains prone to declines in the event of a second wave, which appears to be transpiring.
Positive Brexit news would in the past have triggered sizeable upside adjustments in Sterling, however gains in the current market environment are likely to prove tepid.
Foreign exchange analysts are however unconvinced that the market is about to see a repeat of February-March given the substantial support offered to the economy and financial system by global central banks and governments.
Indeed, the damage of the first wave of covid-19 to financial markets and its subsequent impact on exchange rates appears to have been derived from its shock factor.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1.29.
The projected upper bound is: 1.31.
The projected lower bound is: 1.27.
The projected closing price is: 1.29.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 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 20.5883. This is not an overbought or oversold reading. The last signal was a sell 13 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 45.32. 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 52 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 -97. This is not a topping or bottoming area. The last signal was a sell 5 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 1 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed down -0.002 at 1.291. Volume was 60% below average (consolidating) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume 1.293 1.294 1.290 1.291 52,314 Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish Moving Averages: 10-period 50-period 200-period
Close: 1.30 1.30 1.27
Volatility: 11 11 14
Volume: 137,519 137,271 129,410
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 1.6% above its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on GBP= and have had this outlook for the last 12 periods.