By the end of the last trading week, the GBP/USD currency pair showed high volatility of 140 points, which resulted to a rollback to the previously passed cluster. From the technical analysis point of view, we see a rollback correction in the direction of the accumulation zone at 1.3220, where the quote slowed down the movement and tried to work out this level in the background of continuous rage on Brexit's controversy. This time we have a large-scale demonstration in London itself, where an estimated 1 million people on streets demanding for a second referendum. What we have are options that the Parliament of Great Britain must make a decision until March 29: agree on an agreement, exit without a deal, cancel the Brexit or hold a new referendum. Any option gives speculators the opportunity to see the races on the market, where you can ride.
Today, there is silence on the economic calendar but the information on the background will continue to hold the interest of speculators.
In analyzing the current trading chart, we see an attempt to work out the accumulation of 1.3220 giving out short positions. It is likely to assume that the pound may be under pressure, continuing to decline in the medium term against the background of thickening clouds due to Brexit. The pound may be under pressure and continue its decline in the medium-term. Considering the current oscillation, I do not exclude a temporary bump in the range of 1.3170 / 1.3220 and we can consider a decline to 1.3313-1.30.30 in the case of a clear price fixation below 1.3170.
Based on the available data, it is possible to deduce a number of variations, let's consider them:
- Positions for the purchase of traders consider above fixing the price of 1.3220, with the target of 1.3300.
- Positions for sale traders consider after fixing the price lower than 1.3170.
Analyzing a different timeframe (TF) sector, we can see that there is a downward interest in the short and intraday perspective. Due to uncertainty, the medium-term outlook has changed interest to neutral.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation with the calculation for the Month / Quarter / Year.
(March 25 report was based on the time of publication of the article)
At the current time, the volatility is 59 points. It is likely that the volatility may remain at a high level in the event that an ambiguous information background is preserved.
Zones of resistance: 1.3220 *; 1,3300 **; 1.3440; 1.3580 *; 1.3700
Support areas: 1.3000 ** (1.3000 / 1.3050); 1.2920 *; 1.2770 (1.2720 / 1.2770) **; 1.2620; 1.2500 *; 1.2350 **.
* Periodic level
** Range LevelThe material has been provided by InstaForex Company - www.instaforex.com