Yesterday’s trading session was a routine. The eurozone crisis remains the main deterrent. Even though mass media have reported about a new program expanding the EFSF’s authority and allowing it to purchase risky bonds up to 10% of the GDP. However, the markets showed almost no reaction to this. The US macroeconomic data and quarterly reports also failed to cause any volatility surge.
During the entire European trading session the currency pair was testing a major option barrier (1.5721) and eventually failed to overcome it.
Today’s news background is unlikely to gladden volatility buyers. Firstly, the stats are scanty. Secondly, they are not so significant.
At the moment GBPUSD is being traded between 2 option barriers - 1.5824 and 1.5721. These are the key S/R levels.
Provided by the Department of Options,
