Site map
العربية Български 中文 Čeština English Français Deutsch हिन्दी Bahasa Indonesia Italiano Bahasa Malay اردو Polski Português Română Русский Srpski Slovenský Español ไทย Nederlands Українська Vietnamese বাংলা Ўзбекча O'zbekcha Қазақша

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
Affiliate Program
cabinet icon

Another Lamborghini from InstaForex!Maybe it will be you who will take the keys!

Just make a deposit of at least $1,000 to your account!

Get the best trading conditions and attractive bonus offers! We have already given 6 legendary sports cars! But it does not stop there! The next Lamborghini Huracan of the latest generation may be yours!

InstaForex – invest in your victories!

Instant account opening

Get a letter of instructions
toolbar icon

Trading Platform

For mobile devices

For trading via browser

Over the last trading day, the pound / dollar currency pair showed volatility, close to the average daily 71 points, as a result of having the expected pullback. From the point of view of technical analysis, we see a correctional movement from the pivot point of 1.2433, the minimum of the current year, where the quotation reached the value of 1.2569, the area of the cluster on July 3-4. After that, we see a slight overheating of long positions and, as a fact, an expected rollback to the previously passed level of 1.2500. As it was written in the previous review, after a spike in prices, traders set at partial profit taking, in case there is a rollback with the restoration of quotes.

The news background of the previous day focused on the second speech by Jerome Powell in the US Congress, where the Fed chief did not say anything new, highlighting only: "The most important thing for me is the uncertainties surrounding the growth of the global economy and trade, which put pressure on the outlook." The life-giving topic of the refinancing rate was not raised during the two-day meeting, but market participants clearly heard hints of a possible reduction, and this all looks like some kind of preparation for easing monetary policy, in particular, lowering the rate. Returning to the news flow, we see that yesterday, data on inflation in the United States came out, where, as expected, they saw a slowdown from 1.8% to 1.6%. Data on the number of initial claims for unemployment benefits fell from 222K to 209K.

Finally, news from England was released. According to the Bank of England, a threat to the British economy is a reduction in foreign investment in UK assets because of Brexit. Foreign investors refuse to invest in commercial real estate and corporate lending in Britain, which indicates that the country is losing its attractiveness in terms of investment against the background of the upcoming exit from the EU, as the famous publication the Wall Street Journal writes. Previously, we have repeatedly raised the topic that the English currency begins and the overcoming of the marks of 2017-2016 is not far off.

Exchange Rates 12.07.2019 analysis

Today, in terms of the economic calendar, we have data on producer prices in the United States, where they expect a decline from 1.8% to 1.6%.

The upcoming trading week in terms of the economic calendar is quite moderate, the week starts with a lull, but from Tuesday we already have a stream of news. Do not forget that the finish of the election race in Britain is nearing, and soon we will officially hear about the victory of Boris Johnson. The circus regarding the divorce process of Brexit will be resumed.

The most interesting events displayed below --->

Tuesday, July 16

United Kingdom 8:30 UTC+00. - Change in the number of applications for unemployment benefits (June): Prev. 23.2K ---> Forecast 22.9K

United Kingdom 8:30 UTC+00. - Average wage with bonuses (May): Prev. 3.1% ---> Forecast 3.0%

United States 12:30 UTC+00 - Retail sales

United States 13:15 UTC+00 - Industrial production

Wednesday, July 17

United Kingdom 8:30 UTC+00. - Consumer Price Index (CPI) (y / y) (June): Prev. 2.0%

United States 12:30 UTC+00 - Number of building permits issued (June): Prev. 1.299M ---> Forecast 1,300M

United States 12:30 UTC+00 - The volume of construction of new homes (June): Prev. 1.269M ---> Forecast of 1.265M

Thursday, July 18

United Kingdom 8:30 UTC+00. - Retail Sales (YoY) (June): Prev. 2.3% ---> Forecast 2.7%

These are preliminary and subject to change.

Exchange Rates 12.07.2019 analysis

Further development

Analyzing the current trading chart, we see that a temporary bump with a pivot point of 1.2500 has been confirmed, and now the quotation continues to fluctuate, having borders of 1.2500 / 1.2570. It is likely to assume that the movement in this framework will still persist, where traders carefully analyze the existing framework for breakdown when paving for further deals.

Based on the available information, it is possible to decompose a number of variations, let's specify them:

- Positions to buy, as written in the previous review, traders were still on the value of 1.2480, and yesterday, they made a profit. Further operations are considered in the case of price fixing higher than 1.2570.

- Sell positions are considered in case of price fixing lower than 1.2500.

Indicator Analysis

Analyzing a different sector of timeframes (TF), we see that indicators in the short term changed their interest to neutral due to ambiguous bumpiness. Intraday perspective retains an upward interest against the background of the correction. The medium-term outlook keeps the downward interest against the background of a general decline since the beginning of the month.

Exchange Rates 12.07.2019 analysis

Weekly volatility / Measurement of volatility: Month; Quarter; Year

Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.

(July 12 was based on the time of publication of the article)

The current time volatility is 34 points. It is likely to assume that the volatility will be fixated within the framework of the daily average.

Exchange Rates 12.07.2019 analysis

Key levels

Zones of resistance: 1.2620; 1.2770 **; 1.2880 (1.2865-1.2880) *; 1.2920 *; 1.3000 **; 1.3180 *; 1,3300.

Support areas: 1.2500; 1.2430 *; 1.2350 **; 1.2100 **; 1.2000.

* Periodic level

** Range Level

*** The article is based on the principle of conducting a transaction, with daily adjustment.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Gven Podolsky,
Analytical expert
InstaForex Group © 2007-2019
Benefit from analysts’ recommendations right now
Top up trading account
Get a bonus from InstaForex

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.