The GBP remains undervalue and the probability of Markets reaction (Long side) has increased. The first support is found at the 1.1969 and 1.1978 respectively. If the price breaks below the 1.1978 level (BOE’s watch level) it could possibly force the pair as low as 1.1800. In contrast, resistance is found at the 1.2415 and 1.2780 respectively. A break above the 1.2780 could possibly push the pair as high as 1.3035. The RSI (W) and CCI (W) closed at the oversold territory.
Source: Exclusive Capital
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.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Capital is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.