Trading recommendations for the GBPUSD currency pair – placing trade orders April 29, 2019

By the end of the last trading week, the currency pair pound / dollar showed a low volatility of 67 points, but even with such a low amplitude, the direction of the quote was built in a correction. From the point of view of technical analysis, we see that the quotation has found a foothold in the face of the periodic level 1.2865, from which came the origin of the corrective move went towards the previously predicted values of 1.2935-1.2960.

The information and news background had statistics about the US GDP for the 1st quarter, where they expected a decline from 2.2% to 2.0%, but as a result, it gets accelerated right up to 3.2%. Returning to the information background, we have another drilling on Brexit, where a survey took place last weekend, which showed that Scottish residents are ready for a new referendum on independence, if the United Kingdom does complete the Brexit according to a tough scenario. As we can see, the outgoing news flow in general had to respond positively to the American currency, but no, the dollar was falling, and the reason probably lies in the general overheating, and the so-called technical correction came.

Today, in terms of the economic calendar, we only have a speech by the head of the Bank of England, Mark Carney.

Further development

Analyzing the current trading chart, we see that the correction is in the construction phase and the quotation has already reached the first control point of 1.2935. It is likely to assume that the correction will continue in the market, where the quotation is within 1.2955-1.2965. It may feel resistance, restoring downward interest.

Indicator Analysis

Analyzing a different sector of timeframes (TF), we see that there is an upward interest against the background of the correction in the short and intraday perspective. Meanwhile, the medium-term perspective maintains a downward interest on the general background of the market.

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

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

(April 29 was based on the time of publication of the article)

The current time volatility is 32 points. Volatility can increase in case of any harsh rhetoric on the part of the head of the Bank of England.

Key levels

Zones of resistance: 1.3000 **; 1.3220 *; 1,3300 **; 1.3440; 1.3580 *; 1.3700

Support areas: 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 GBPUSD currency pair – placing trade orders (April 29)