British Pound News
Looking ahead to the start of this week, the US Dollar (USD) could edge higher against the Pound (GBP) if the latest Chicago Fed National Activity Index rises higher than expected in July.
Added to this, the Dollar could extend its gains on Tuesday if the latest housing data impresses markets. If New Home Sales rise more than expected it could encourage traders to move back towards the Dollar.
The latest US consumer confidence data will also provide USD with support if the latest data shows sentiment amongst Americans has improved more than expected.
Meanwhile, Wednesday could see GBP/USD continue to slide if the latest US durable goods orders increase more than expected.
Although, Sterling sentiment could improve during the session following the latest speech from the Bank of England’s (BoE) Andrew Haldane. Traders will be looking for clue on future monetary policy from the bank’s chief economist. Any upbeat comments could offer the Pound support.
Thursday could see risk appetite slump following the latest US initial jobless claims which would send the Pound lower. If claims exceed one million for the second week in a row it will weigh on risk appetite and send the riskier GBP lower.
Meanwhile traders will also be closely watching the latest preliminary US GDP which is expected to show growth plummeted by more than -30%. This is likely to weigh on the Dollar but also cause traders to flock away from riskier assets.
Traders will also be eyeing the latest speech from the Federal Reserve’s Jerome Powell. If the Fed’s Chair is overly dovish about the economic rebound in the world’s largest economy the pairing is likely to remain under pressure.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Economic Events
Technical Indicators
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.33.
The projected lower bound is: 1.29.
The projected closing price is: 1.31.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 Indicators
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.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 36.0376. This is not an overbought or oversold reading. The last signal was a sell 14 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 57.29. 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 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 -29. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.001 at 1.309. Volume was 88% below average (consolidating) and Bollinger Bands were 50% narrower than normal.
Open High Low Close Volume 1.308 1.310 1.308 1.309 14,852 Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish Moving Averages: 10-period 50-period 200-period Close: 1.31 1.28 1.27 Volatility: 12 10 14 Volume: 105,608 124,768 119,311
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.
Summary
FOREX GBP= is currently 2.9% above its 200-period moving average and is in an upward 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 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 23 periods.