Yesterday GBPUSD broke above a considerable option barrier (1.62320) but was hampered by the resistance level located at 1.6327. The UK’s GDP growth and the decline in the US durable goods orders seem to have favored the rally. Yesterday during the entire trading session the volatility of GBPUSD was above the average.
Today’s news reports are of medium importance. The only significant news releases are the US jobless claims and Jean-Claude Trichet’s speech.
It is expected that the initial and continuing jobless claims will decline by 9K and 11K correspondingly.
Any major deviation from the forecast will cause volatility hikes. In these cases it is not recommended to buy volatility as it may collapse shortly after the increase.
Provided by the Department of Options,
