GBPUSD has just returned into the 1.6327 - 1.6232 range.
Yesterday Standard & Poor's lower the USA’s credit rating from “stable” down to “negative”, which caused a volatility spike. In a couple of seconds the volatility value increased up to the level of the 3-week high. Probably few of us expected such a surprise at the very beginning of the trading week. However, those traders who anticipated the rating decline remained satisfied. Let’s hope the rest of the week will go on like that.
As the currency pair is again being traded within the price range, 1.6327 and 1.6232 remain the most significant levels. If the price succeeds in breaking above them the next crucial levels of resistance will be found at 1.6449 and 1.6500. The current support level is located at 1.5911.
Today’s news background is expected to be of medium intensity. Since 7.00GMT the Euro-zone countries will start publishing their PMI reports. Then we’ll get to know the data on the US housing market: Housing Starts and Building Permits.
These news releases are unlikely to have a significant impact on the currency pair in terms of the pace of trend moments. However, they will probably provide some opportunities for volatility buyers, who don’t care about trends and their direction.
Provided by the Department of Options,
