The GBP has managed to stabilize today at around 1.3000 against the US dollar. Yesterday the PMI was very impressive. The index was revised to 53.9 from 52.9 points against the forecast of market analysis. In addition, the Bank of England last week kept interest rates unchanged and, of course, this move reduces uncertainty about a non-deal Brexit at the end of 2020.
The GBP/USD remains on the defensive, but the probability of a break above 1.3000 is very likely. If the price breaks the 1.3000 psychological level, it could possibly force the pair as high as 1.3200 and 1.3319 level respectively. In contrast, the first support is found at 1.2904 and 1.2610 level respectively. If the price breaks below the 1.2610 level, it could possibly force the pair as low as 1.2456. The RSI (W) remains at the neutral to negative territory and the CCI (W) remains at the neutral 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.
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