Trading recommendations for the GBPUSD currency pair - placement of trading orders (May 15)

For the last trading day, the pound / dollar currency pair showed high volatility of 94 points. As a result, a rapid decline continues--taking another profit from the market. From the point of view of technical analysis, we see that the bearish interest has not gone away and our predicted coordinates, 1.2920 - 1.2880, have been reached. Now, in an orderly manner, the correctional phase on May 9 made it possible to regroup the trading forces, due to which we dashingly broke through the level of 1.3000 held by us, but then we had an inertial move that overtook a number of periodic levels on its way. At the same time, we do not overlook the price fixing below the local minimum of 1.2865 (April 25), which was quite unexpected due to the growing overheating. So what supported the sellers? In fact, for a long time I have been trying to convey the idea that a pound fall in relation with their problems in Britain, but this is not what happened on the information background. The Conservative Party of Great Britain is already in a rather rigid form, by June 15, it is necessary to submit a draft agreement with the EU to the House of Commons that would suit everyone. And until then, Theresa May should resign. The conservatives also threatened May with the introduction of a new bill to the parliament, which could be prompted by the country's withdrawal without any deal with the EU.

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Today, in terms of the economic calendar, we have the publication of statistics on the United States, which, according to forecasts, are quite good. The number of building permits issued in April is growing from 1.288M to 1.290M. The number of initial claims for unemployment benefits is reduced from 228K to 220K. At the same time, if the negative background in Britain persists, the dollar will have another stimulus for growth.

Further development

Analyzing the current trading chart, we see that the downward interest remains and a fleeting pullback has passed into the "Low" update. Many may say that there is already a significant overheating of short positions. It has been shown, but at the same time, there is a strong downward background. And the quotation has a lot to decline. It is likely to assume that the bears will try to decline to the level of 1.2770-1.2720, which reflects our support and the low of February of the current year. At this coordinate, many traders consider profit taking and a possible correction.

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

- Buy positions are considered in case of finding a pivot near the level of 1.2770, where a correction is possible in the case of working off.

- Positions for sale remain in the direction of the level of 1.2770-1.2720.

Indicator Analysis

Analyzing a different sector of timeframes (TF ), we see that indicators in all time frames tend to decrease, which is caused by the general background of the market.

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

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

(May 16, was based on the time of publication of the article)

The current time volatility is 31 points. Since there is a pivot point in the face of the level of 1.2770, volatility can be limited within the framework of the average daily indicator. However, if the inertial course continues with the support of the information background, the indicator might change.

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Key levels

Zones of resistance: 1.2880 (1.2865-1.2880) *; 1.2920 * 1.3000 **; 1.3180 *; 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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