Volatility forecast of GBPUSD pair for November 01, 2011

Forex news, GBP/USD. Yesterday was rather profitable in terms of volatility trade. GBP/USD currency pair has literally “burst” the range between two option barriers 1.5999 and 1.6232 due to abundant news from European Union, especially concerning the ways of solving European and Greek debt problems. In this reference, the general level of expected volatility has risen by over 2%.
Basic assets rarely demonstrate such activity. Financial markets are unlikely to experience the same success as yesterday. If this happens, it will be not until another meeting of G20, when final measures to fight default in Greece will be announced, as well as to form stabilization fund in Eurozone.
However, today there are a lot of significant economic factors. Production sector in Great Britain and USA as well as Prelim GDP are worth attention. It is evident that any deviation from predicted values will cause the burst of expected volatility, which will encourage its buyers.
Option barriers 1.6232 and 1.5911 will remain the major levels of resistance and support accordingly.

issued by MF Academy Department of Options