07.05.201908:44 Forex Analysis & Reviews: Trading recommendations for the currency pair GBPUSD - placement of trading orders (May 7)

Over the past trading day, the currency pair pound / dollar showed volatility close to the average daily 89 points, as a result of reaching the predicted value. From the point of view of technical analysis, we see that the pullback that followed the impulse rally reached the predicted value of 1.3080, which reflected the earlier accumulation. Meanwhile, the level of 1.3080 kept the quotation, and after a brief stagnation, the recovery process began. On the other hand. the background information had another talk about Brexit, wherein Theresa May held a "secret" meeting with various assistants and ministers, at which they discussed possible ways to hold a second referendum on Brexit. At the so-called "secret" meeting, scenarios were developed for the cabinet's actions in case if the government fails to prevent a second referendum from voting in the House of Commons. If conservatives and Labor do not agree, and the House of Commons does not support the Prime Minister's plan, many parliamentarians will insist on raising the question of withdrawing from the EU for a repeat popular vote, said the Minister of Finance of the shadow Cabinet of labour John McDonnell.

Today, in terms of the economic calendar, we have data on the number of open vacancies in the US labor market, where growth is expected from 7.087M to 7.350M.

Further development

Analyzing the current trading chart, we see how the quote jumped to the value of 1.3130. The coordinates of which displays a cluster from April 9-15. Thus, it probably suggest temporary stagnation with a possible rebound to the pivot of 1.3080. In any case, traders are immediately considering a double operation. The first is considered as pending orders in the form of a clear price fixing higher than 1.3135, with a primary perspective to 1.3170-1.3180. The second theory is a looped course of 1.3050 / 1.3130, where work is conducted on low trading volumes, and the main volume is laid only if the price is fixed below 1.3080.

Indicator Analysis

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

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

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

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

The current time volatility is 57 points. It is likely to assume that the volatility may increase in case of the breakdown of the value of 1.3130. Otherwise, there will be stagnation in the framework.

Key levels

Zones of resistance: 1.3180 *; 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