For the last trading day, the currency pair pound / dollar showed an extremely low volatility of 50 points, as a result of which having a low amplitude fluctuation. From the point of view of technical analysis, we see the compression of the quotation, where there is a distinct resistance in the form of the value of 1.3120, which appeared during the initial corrective movement. On the other hand, the information and news background cautiously analyzes everything that is happening in the "world" of Brexit, where business and investors in general, are trying to understand where they are going. This is actually one of the reasons for the sharp decline in volatility. In turn, Prime Minister Theresa May said that London will continue to prepare for the possible withdrawal of the country from the EU without an agreement with the European Union.
Today, in terms of the economic calendar, we have data on the level of wages in the UK, where growth is expected from 3.4% to 3.5 % (including premiums). In the afternoon, industrial production data in the United States will be published, where they expect a decline from 3.6% to 3.2%.
Further development
Analyzing the current trading chart, we see that the quotation continues to move in the amplitude of 1.3050 / 1.3120, where the quotation is already nearing the lower border. It is likely to assume that the movement within the given framework will continue, where in the event of a weakening dollar against the background of the news flow, we can return to the upper limit of the range again.
Positions for buying and selling at the current time are built on the principle of working in a range, and the main movements are considered by traders only in the event of a breakdown of a particular border.
Indicator Analysis
Analyzing the different timeframe (TF) sector, we see that there is a downward interest in the market in the short, intraday and medium term. It should be understood that due to the cyclical movement in the range, indicators on the smaller TFs may vary.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.
(April 16 was based on the time of publication of the article)
The current time volatility is 28 points. In the case of continued fluctuations in the existing range, the volatility will remain low. Increased volatility can be expected in the event of a breakdown of one or another range boundaries, coupled with the information background.
Key levels
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 Level
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