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By the end of the last trading week, the pound/dollar currency pair showed a high volatility of 156 pips, as a result, breaking through the newly formed flat. From a technical analysis point of view, we can see the impulse move that broke through the upper edge of the previously formed a short-term flat 1,2700/1.2800, the result of having a surge up to a value of 1,2865. The news background focuses on the Brexit agreement, where this time British Prime Minister Theresa May changes her typical statements with the phrases "... Brexit will occur, even if no agreement with the EU is reached ..." to "that the way The European Union may not take place at all. " As you know, the situation is full of uncertainty and investors are trying not to get out, waiting for tomorrow's vote.
Today, from the point of view of the economic calendar, there is no news, but they are, in principle, not needed, all are waiting for only one - a vote in Parliament on January 15.
Further development
Analyzing the current trading chart, we see that after the impulse move, the quote stalled in the area of 1.2865, where the recovery process took place. It is likely to assume that because of the uncertainty we can expect everything, the most logical thing is, of course, the stagnation before the vote, but, as we already know, jumps can come from scratch.
It is risky to place any orders now, and the big players are just waiting, but if we consider everything from the point of view of speculators, we can try to jump on the races.
- Buyt positions are under consideration in the event of price fixing higher than 1,2865.
- Positions lower than 1,2810, with a primary outlook of 1,2770-1,2700. Next, we look at the behavior of quotes and fixing lower than 1,2700.
Indicator analysis
Analyzing the different sector of timeframes (TF), we see that in the short, intraday and medium term, there is still an upward interest. Indicators may change arbitrarily in the run-up to the vote.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.
(January 14 was based on the time of publication of the article)
The current time volatility is 45 points. Now everything depends on rumors, statements, and the very decision of the upcoming vote in the British Parliament.
Key levels
Zones of resistance: 1.2920 *; 1.3000 ** (1.3000 / 1.3050); 1.3200 * 1.3300; 1.3440 **; 1.3580 *; 1.3700
Support areas: 1.2770 (1.2720 / 1.2770) **; 1.2620; 1.2500 *; 1.2350 **.
* Periodic level
** Range Level
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