FX.co ★ Trading recommendations for the GBPUSD currency pair - placing trade orders (February 7)

For yesterday's trading day, the currency pair Pound / Dollar showed a low volatility of 54 points. As a result, the quotation froze at a periodic level of 1.2920. From the point of view of technical analysis, we see stagnation with a pullback near the periodic level of 1.2920, where it was previously said that this point is primary with a downward course and short positions from the level of 1.3000. The news background continues to be held on the ambiguous Brexit. Moreover, this time, we have news that the British Prime Minister plans to postpone the next parliamentary vote from February 14 to a later date, presumably after February 25. In principle, this step is clear, nothing is ready. Today, two important events are planned. The first is a meeting of the Bank of England, where, of course, the rate is not affected, but Mark Carney can criticize Brexit and tell him how he can do damage to the economy. Next is Theresa May's trip to Brussels, where she will hold talks with Jean-Claude Juncker regarding the Brexit agreement. Theresa's goal is the same - to persuade the EU to make changes to the Brexit Agreement, in particular Northern Ireland, but that in return she will receive the same phrase "The current agreement is the best agreement possible", the likelihood is very high.

Further development

Analyzing the current trading chart, we see a breakdown of the recent stagnation, or rather, the price has overcome the level of 1.2920, which previously held the quote. It is likely to assume that the downward mood will continue, where the traders are 1.1850.

Based on the data available, it is possible to decompose a number of variations, let's consider them:

- Positions to buy in two ways: Price fixing higher than 1.2950; The second point is already within the limits of 1.2850, in case of stagnation.

- Positions for sale, as he wrote in the previous review, traders were guided by short positions from the breakdown level of 1.3000. Now it is progressing with reaching the first point 1.2920, and progressing to the second 1.2850.

Indicator Analysis

Analyzing the different sector of time frames (TF ), we see that in the short, intraday and medium term, there is a downward interest against the general background of the market.

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

Measurement of volatility reflects the average daily fluctuation, with the calculation for the Month / Quarter / Year.

(February 7 was based on the time of publication of the article)

The current time volatility is 44 points. It is likely to assume that on the current information background, volatility may increase.

Key levels

Zones of resistance : 1.2920 *; 1.3000 ** (1.3000 / 1.3050); 1.3200 * 1.3300; 1.3440 **; 1.3580 *; 1.3700

Support zones 1,2850 *; 1.2770 (1.2720 / 1.2770) **; 1.2620; 1.2500 *; 1.2350 **.

* Periodic level

** Range Level