The pound remains trading upward in the market, and almost reached a price level of 1.3513. However, long positions were set lower than the control level, so the quote went into a correction and moved down again in the chart.
Thus, if we look at the M15 chart for yesterday, we will see that short positions surged at 14: 30-18: 00, during the US trading session.
It gave volatility of about 125 points, which is 8% higher than the average level. In addition, volatility has been high all throughout August, which means that market sentiment is high in GBP / USD.
August: Monday - 107 points; Tuesday - 126 points; Wednesday - 103 points; Thursday - 75 points; Friday - 139 points; Monday - 84 points; Tuesday - 89 points; Wednesday - 62 points; Thursday - 95 points; Friday - 93 points; Monday - 47 points; Tuesday - 153 points; Wednesday - 173 points; Thursday - 159 points; Friday - 195 points; Monday - 95 points; Tuesday - 112 points; Wednesday - 101 points; Thursday - 121 points; Friday - 170 points; Monday - 94 points.
At the same time, in the daily chart, it is clear that if the quote successfully pass 1.3513, price will automatically rise to the levels reached in spring 2018. As of the moment, there is only 30% left until the quote reaches these levels ...
Data on the UK lending market was published yesterday, and it came out much better than the forecasts. Permits for mortgage lending rose 66.3 thousand amid recovery in the housing market, while the volume of mortgage lending, which was supposed to increase by £ 2.5 billion, jumped £ 2.7 billion. Consumer lending also showed a strong and healthy trend, with volume increasing by £ 1.2 billion, against a forecast of £ 0.6 billion.
With regards to the long-awaited Brexit, London is losing hope in the conclusion of a trade agreement, and accused the European Union of not wanting to compromise.
"The EU continues to insist that we must yield in difficult areas of negotiations, such as EU state aid, before further work can be done in any other area. This makes progress very difficult. We would like to solve simple issues first, in order to give impetus to the negotiations, since time is short on both sides, "said UK spokesperson, James Slack.
"The talks are not progressing because of the unrealistic and uncompromising position of Great Britain," argued by the French Foreign Minister, Jean-Yves Le Drian.
Today, ADP will publish its report on the level of employment in the US private sector, and its forecast is a rise by 950 thousand in August.
Such an increase will have a positive effect on consumption, which will stimulate economic growth and strengthen the US dollar.
US 13:15 - ADP report on employment in the private sector, for August
Further development
As we can see on the trading chart, the correction already to more than 150 points, and the mirror level of 1.3300 could become the support level for short positions.
It is important to consider short positions after a consolidation below 1.3300, in order to avoid stagnation and return of long positions after a rebound from 1.3300.
In any case, everything depends on 1.3300 / 1.3350, as it is in this range that upward scenarios could develop. Among which is the formation of the weekly channel, while the other is a long correction relative to an overbought pound sterling.
Indicator analysis
Looking at the different time frames, we can see that the indicators on the minute and hourly periods signal sell due to a correction in GBP / USD, while the daily period signals buy, in reflection of the current upward trend.
Weekly volatility / Volatility measurement: Month; Quarter; Year
Volatility is measured relative to the average daily fluctuations, which are calculated every Month / Quarter / Year.
(It's dynamics on September 2 was calculated, all while taking into account the time this article is published)
Volatility is 77 points today, which is 33% below the average. If speculation persists in the market, activity will increase even higher in the market.
Key levels
Resistance zones: 1.3600; 1.3850; 1.4000 ***; 1.4350 **.
Support Zones: 1.3300 **; 1.3200; 1.3000 ***; 1.2885 *; 1.2770 **; 1.2620; 1.2500; 1.2350 **; 1.2250; 1.2150 **; 1.2000 *** (1.1957); 1.1850; 1.1660; 1.1450 (1.1411).
* Periodic level
** Range level
*** Psychological level
Also check trading recommendations for the EUR/USD pair here, or brief trading recommendations for the EUR/USD and GBP/USD pairs here.
