Trading recommendations for the currency pair GBPUSD – placement of trading orders (March 7)

For the last trading day, the currency pair Pound / Dollar showed extremely low volatility of 56 points. As a result, the recent pullback was changed to stagnation. From the point of view of technical analysis, we have a rollback from the value of 1.3100, where the quote came earlier. In fact, the value of 1.3100, together with a Fibo-level of 38.20 (short term), plays a certain point of support, resulting in stagnation within the framework of 1.3130 / 1.3180. Meanwhile, the news background for yesterday had practically no activity. The only thing that can be identified is the US data on the change in the number of people employed in the non-agricultural sector from ADP in February, where there was a decrease from 300K to 183K, but this news did not practically affected the market. The information background had the statement of the European Commission in the person of the official representative Margaritis Schinas. According to him, the EU and Britain are still holding heavy discussions around the Brexit agreement. As of now, not a single solution has been found that would comply with the Brexit agreement, including the protocol for Ireland and Northern Ireland, Schinas said.

Today, in terms of the economic calendar, we can say the key day of the week that many traders were waiting for. Today is the ECB meeting which will be followed by a press conference where Mario Draghi can give something interesting about future plans and, of course, the fate of the interest rate. Now, you ask why we consider Europe, if we work with the British pound? The fact is that there is a high correlation between these trading instruments, and if one of them changes dramatically, the other can show a “practically” similar oscillation.

16:30 MSK – Press Conference of the ECB.

Further development

Analyzing the current trading chart, we see that the quotation is developing around the value level of 1.3180, which we have previously designated as the upper limit of the cluster of 1.3130 / 1.3180. It is likely to assume that the current amplitude of the oscillation is up to the point of the information and news background, here traders carefully monitor the boundaries for breakdown.

yI2aHr8O1fkt38EYVcWIi0gs_Kq98C0jP_YPVivV

Based on the available data, it is possible to decompose a number of variations. Let’s consider them:

– Positions for buy are considered in case of a clear price fixation higher than 1.3200.

– Positions for sale are considered in case of a clear price fixation lower than 1.3120.

Indicator Analysis

Analyzing a different sector of timeframes (TF), we see that indicators have chosen a downward interest because of the current cluster in the short term. On the other hand, intraday perspective changed interest from descending to neutral because f the same cluster while the medium-term outlook remains on the upward interest.

T1_QoayZBPi07Kr0oA538PGtkhlYjLCg_QFHv6ED

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 7, was based on the time of publication of the article)

The current time volatility is 27 points. In case of breakdown of the accumulation and support from the information and news background, the volatility of the day can break out of low indicators.

WNlNADniyAKNEK4Obx2d-57BUYnLvWf5u7ObLmJY

Key levels

Zones of resistance: 1,3200 *; 1.3300; 1.3440 **; 1.3580 *; 1.3700

Support areas: 1.3130 *; 1.3000 ** (1.3000 / 1.3050); 1.2920 *; 1.2770 (1.2720 / 1.2770) **; 1.2620; 1.2500 *; 1.2350 **.

* Periodic level

** Range Level

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Trading recommendations for the currency pair GBPUSD – placement of trading orders (March 7)

Won't your trader friends like this?
InstaForex
About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*