The pound rose to 1,2990 last month after polls continued to show Torie's favourite to win the December 12 National Elections and resolve the 3.5 years of political uncertainty. Prime Minister Johnson through the manifesto promised to invest more social funds for the British people. In addition, it was said that the new taxes are off the table, as opposed to the opposition leader who promised more taxes on funds, businesses and the rich. Tories’ majority give more value to the pound, but the more positive ones give the BOE more room to pursue the monetary policy without obstacles.
On a technical basis, if the price breaks the 1.3035 level, it could possibly force the pair as high as 1.3167 and 1.3283 respectively. In contrast, the first support is found at 1.2859 and 1.2772 respectively. The RSI (W) closed at the overbought territory.
The chances of a Brexit deal were slashed last month and after the latest polls PM Johnson is the favourite candidate in the election to win and he will get the support of Parliament to get the new withdrawal agreement.
What Is Relative Strength Index – RSI?
The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
What is the Commodity Channel Index (CCI)?
Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.
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