British Pound: USD/GBP (GBP=X) regaining ground after head and shoulders breakdown
GBP/USD spent the end of last week falling after completing a head and shoulders formation. We are seeing the pair regain ground this morning, bringing about a possibility of a wider 76.4% retracement beyond the 61.8% retracement seen last week.
However, there is also a good chance that we are looking at a retracement of the sell-off seen from Thursday’s high. As such, further near-term upside looks likely, with the size of that upside determined by the ability to break $1.2687.
Overall, the bias in prices is: Downwards
By the way, prices are vulnerable to a correction towards 1.29.
The projected upper bound is: 1.29.
The projected lower bound is: 1.24.
The projected closing price is: 1.26.
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 24 white candles and 26 black candles for a net of 2 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 52.4728. This is not an overbought or oversold reading. The last signal was a buy 3 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 42.57. 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 85 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 -66. This is not a topping or bottoming area. The last signal was a buy 2 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 22 period(s) ago.
Rex Takasugi – TD Profile
FOREX GBP= closed up 0.004 at 1.262. Volume was 25% below average (neutral) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume___
1.259 1.265 1.257 1.262 141,909
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.26 1.29 1.32
Volatility: 12 12 10
Volume: 211,987 202,350 177,208
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 4.7% below its 200-period moving average and is in an downward trend. Volatility is low 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 22 periods.