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British Pound Outlook
The British Pound recorded its strongest daily gain against the U.S. Dollar, Euro and other major peers since March amidst an upsurge in optimism that the EU and UK were headed towards a post-Brexit trade deal.
The Pound rose sharply after it was confirmed the EU and UK had agreed to intensify negotiations to the extent they would take place every day, and even on weekends, until a deal is achieved.
Sterling rose above 1.31 against the Dollar and closed in on 1.11 against the Euro after the EU and UK released a joint statement detailing the nature of further negotiations.
“The parties have agreed to intensify negotiations. Talks will take place across all negotiating tables concurrently. Negotiations will take place daily including weekends, unless both sides agree otherwise,” said the statement.
Economists at HEFFX see a 60% probability of a deal being reached, which appears to be lower than the odds assigned by the market given the recent move higher in Sterling.
Positioning in Sterling is meanwhile said to be light which mitigates against any technical-based flows.
GBP/US Dollar Exchange Rate
Today’s Forex Rates
GBP/US Dollar FX Polls
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1.33.
The projected lower bound is: 1.28.
The projected closing price is: 1.31.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 75.3527. This is not an overbought or oversold reading. The last signal was a sell 8 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 56.87. 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 47 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 106.This is an overbought reading. However, a signal…
Go to the news source: British Pound: GBP/USD (GBP=X) Daily Forex Forecast