Trading recommendations GBP/USD currency pair – placing trade orders May 6, 2019

By the end of the last trading week, the pound / dollar currency pair showed a high volatility of 187 points, drawing a large impulse candle in the market. From the point of view of technical analysis, we see that after the corrective move to the range level of 1.3000, the quotation found support, restoring the upward move. Naturally, this kind of turbulence could not appear from scratch, the whole thing is in the information and news background, in particular – in Brexit. This time, there were rumors saying that Theresa May is preparing to make big compromises to the opposition. In particular, it concerns the issues of a temporary customs union with the EU, as well as the introduction of common market rules for certain categories of goods and the law guaranteeing workers in the UK the same rights as in the European Union. On these rumors, the pound flew almost instantly.

Today, in terms of the economic calendar, we see that there is no public holiday in the UK, in the United States there are no weighty statistics.

Further development

Analyzing the current trading schedule, we see that there is a rollback, which is completely normal after this kind of rally. The point of resistance 1.3175, where the quote came, reflects the stratum from the long-term level of Fibo 38.2, as well as a number of price clusters on the history, thus the coordinates can be called the full-fledged level of resistance. It is likely to assume further formation of a pullback towards 1.3080, where it is worth analyzing the behavior of quotes and possible stagnation.

Indicator Analysis

Analyzing a different sector of timeframes (TF), we see that in the short, intraday and medium term, there is an upward interest against the background of the recent rally.

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

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

(May 6 was based on the time of publication of the article)

The current time volatility is 57 points. It is likely to assume that volatility may still grow, but its chapel is fixated on the daily average value.

Key levels

Zones of resistance: 1.3175 *; 1,3300 **; 1.3440; 1.3580 *; 1.3700

Support areas: 1.3000 **; 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 (May 6)