The currency pair is being traded in the price range between 1.6449 and 1.6327 (option barriers). Yesterday the volatility level was slightly below the average. Today’s news events will probably increase the volatility of GBPUSD and will make the price come out of the range.
These are the most significant news releases for today:
GER - CPI final, wholesale price index
GBR - trade balance, BOE inflation report, BOE Gov King speaks
USA - EIA weekly crude and gasoline stocks, federal budget.
If there is a significant value gap between the actual data and the forecast, there will be a sharp volatility increase, which will be a good sign for volatility buyers.
If the price comes out of the range the next closest support level will become the option level of 1.6232 while 1.6565 will become a resistance level.
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Provided by the Department of Options,
