Ivan Zhigalov
GBPUSD keeps being traded in the price range 1.6449 - 1.6327. The expected volatility of the currency pair is still fairly high. The US unemployment news block accelerated the price movement, making the British Pound lose 100 pts against the US Dollar.
The volatility was also supported by yesterday’s news reports from the UK and Euro-zone (trade balance, interest rates and Jean-Claude Tricet’s speech).
Today’s news blocks are rich in major reports favoring volatility purchases. The most significant reports are the UK and Germany’s CPIs. However, you shouldn’t forget that the volatility growth potential is restrained at the moment as the volatility level is the highest possible. That is why volatility purchases are dangerous right now while volatility collapse is highly probable.
On breaking the current support/resistance levels the option barriers 1.6565 and 1.6232 will become the new closest S/R levels.
Provided by the Department of Options,
Ivan Zhigalov
