For the last trading day, the currency pair Pound / Dollar showed a mega-volatility of 282 points once again, as a result of having a wide amplitude of fluctuations. From the point of view of technical analysis, we have a pulse movement, where as a result, the quotation returned to the psychological value of 1.3000 for a while and almost immediately rolled back. It was all because of the information background. Yesterday, the British Parliament held another vote on the Brexit Treaty with the EU, and, as you already guessed, Theresa May was defeated: 391 deputies voted against her, 242. Although, the news was expected, the speculators did not miss the moment to roll the English pound to the bottom. In turn, the European Union has already responded by stating that it regrets, but it will not help Britain.
Today new stages of voting in parliament begin. It will be about withdrawal of the country from the EU without a deal - this is the so-called hard Brexit. If they do not agree on anything, then on Thursday we will focus on postponing the date of Brexit, to which referred by many experts.
Analyzing the current trading chart, we see that the quotation tends to roll back after yesterday's rally of bears. It is likely to assume that the rollback will continue, and in the case of supporting the information background, we will see almost a 100% recovery. What kind of support? If the parliament does not come to anything on the current vote, hen it is obvious that everyone will vote for a postponement tomorrow, nd this news will be regarded by the speculators as positive and the pound will go into strengthening.
Based on the available data, it is possible to decompose a number of variations. Let's consider them:
- Positions for buy are considered in the case of leveling and fixing higher than 1.3140, with a perspective of 1.3180-1.3220.
- Positions for sale are considered after fixing the price lower than 1.3040, with a primary perspective of 1.3000.
Analyzing a different sector of timeframes (TF), we see that there has been an upward interest against the background of a rollback in the short and intraday perspective. On the other hand, the medium-term perspective, due to the recent rally, has changed interest to downward.
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 13 was based on the time of publication of the article)
The current time volatility is 59 points. It is likely to assume that the volatility, due to the information background, will remain at a high level.
Zones of resistance: 1.3130 *; 1,3200 *; 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