The currency pair Pound / Dollar showed a low volatility of 54 points by the end of the last trading week. As a result, the quotation remained at the same level. From the point of view of technical analysis, we see a six-day accumulation at a periodic level of 1.2920, while exhibiting low volatility. Moreover, the informational news background did not have something new in itself concerning the prolonged agreement on Brexit over the past weekend. The head of the British government Theresa May also promises new debates on Brexit, trying to gain time to negotiate with the officials of the European Union. Time remains less and less, however, there are no results. No one already denies that the vote in parliament under the agreement will be postponed from this week to a later date.
Today, from the point of view of the economic calendar, we have statistics from the UK regarding GDP and industrial data production.
United Kingdom 12:30 Moscow time - GDP (sq / sq) (Q4): Prev. 0.6% ---> Forecast 0.3%
United Kingdom 12:30 Moscow time - Production volume in the manufacturing industry (m / m) (December)
Analyzing the current trading chart, we see that the quotation is trying to overcome the periodic level of 1.2920, but is still within its framework. Most probably, a temporary bump around the level of 1.2920 is assumed. On the other hand, in the case of a clear price fixing lower than 1.2900, the way to 1.2850-1.2770 will open.
Based on the available data, it is possible to break down a number of variations. Let us consider them:
- Positions for the purchase should be considered already in the case of price fixing higher than 1.3000, so as not to run into a false breakdown. Otherwise, looking for buying points in the area of levels 1.2850 --- 1.2770 will be considered.
- Positions for sale, as indicated in previous reviews, traders are focused on the breakdown level of 1.2920. Where in the case of execution, we will decline to the values of 1.2850-1.2770.
Analyzing the different sector of timeframes (TF ), we see that there is a downward interest on the general background of the market in the short, intraday, and medium term.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, with the calculation for the Month / Quarter / Year.
(February 11 was based on the time of publication of the article)
The current time volatility is 36 points. It is likely to assume that in case of a breakdown of the periodic level of 1.2920, the volatility may increase.
Zones of resistance: 1.2920 *; ** 1.3000 (1.3000 / 1.3050); 1,3200 *; 1.3300; 1.3440 **; 1.3580 *; 1.3700.
Support areas: 1.2920 *; 1.2850 *; 1.2770 (1.2720 / 1.2770) **; 1.2620; 1.2500 *; 1.2350 **.
* Periodic level
** Range Level
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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