Over the past trading day, the currency pair pound / dollar showed a consistently high volatility of 140 points, as a result of having a fairly wide amplitude of fluctuations. From the point of view of technical analysis, we see that after the quotation reached a psychological level of 1.3000. The bears slowed down and as a result, a full-fledged correction to the value of 1.3148 took shape on the background of general uncertainty and, naturally, accumulated oversold. The information and news background continues to revolve around Brexit, where, for the third time, the British Parliament rejected all available options for a "divorce" agreement. Yesterday, according to the tradition, the Parliament of Great Britain gave a look at all the options for the transaction, or rather, there were the last four. Most support was received by the scenario of the deputy from the Conservative Party, Kenneth Clarke under which Britain retains membership in a customs union. 273 deputies voted for, while 276 are against. However, this is not enough for approval. A dead end is the only definition of everything that is happening. The ideal version of an agreement that the deputies would suit the deputies, simply does not exist, since the EU does not back down and defends only its own interests. Let's now go over the comments of high-ranking British officials: Brexit Minister Stephen Barclay said that "Parliament constantly refuses to go out without a deal, but it also does not want to remain in the EU. Therefore, the only option is to find a way by which the UK will be able to leave the European Union by concluding a deal with it. And the government still believes that the best course of action is to do it as soon as possible. " What can I say right? "Captain-obvious" do as soon as possible. Well, there are literally 10 days left. In turn, Prime Minister Theresa May is looking for an opportunity to hold the fourth vote in Parliament, and it's not for nothing that she is called the second "Iron Lady", since her perseverance are on the right track.
Today, as Stephen Barclay announced, a meeting of the members of the British Cabinet is scheduled, and it is expected that it will consider all options for resolving the situation.
Further development
Analyzing the current trading chart, we see that the earlier corrective move came to an end, and the quotation again tends to move to the recent pivot point in the form of the psychological level of 1.3000. It is likely to assume that the quotation will go down to the level of 1.3000, but then you need to monitor the price behavior on the subject of fixation points.
Based on the available data, it is possible to decompose a number of variations. Let's consider them:
- We consider buying positions in the region of 1.3000, in the event that there is stagnation and an attempt to rebound.
- Traders consider selling positions with a primary perspective to the level of 1.3000. Furthermore, fixation points of 1.2955 are already monitored.
Indicator Analysis
Analyzing a different sector of timeframes (TF), we see that there is a downward interest on the general background of the market in the short, intraday and medium term.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, with the calculation for the Month / Quarter / Year.
(April 2 was based on the time of publication of the article)
The current time volatility is 70 points. It is likely to assume that due to the general information background, volatility will remain at a high level.
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
The material has been provided by InstaForex Company - www.instaforex.com
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