Forex Market: GBP/BGN trading outlook for March 28th

Friday’s trade saw GBP/BGN within the range of 2.4689-2.4805. The pair closed at 2.4779, inching up 0.02% on a daily basis. It has been the 11th gain in the past 21 trading days and also a second consecutive one. In weekly terms, GBP/BGN lost 1.39% of its value during the current week. It has been the 9th drop in the past 12 weeks, a third consecutive one and also the sharpest one since the week ended on February 28th. GBP/BGN has gone down 1.18% so far during the current month, following three successive months of decline. In February GBP/BGN depreciated 2.69%.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (March 28th).

Correlation with other currency pairs

Taking into account the week ended on March 25th and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

GBP/BGN to GBP/USD (0.9597, or very strong)
GBP/BGN to EUR/USD (0.7428, or strong)
GBP/BGN to NZD/USD (0.6469, or strong)
GBP/BGN to CHF/BGN (0.4433, or moderate)
GBP/BGN to AUD/USD (0.3228, or moderate)
GBP/BGN to DKK/BGN (0.1210, or weak)
GBP/BGN to USD/CAD (-0.3974, or moderate)
GBP/BGN to USD/JPY (-0.5663, or strong)
GBP/BGN to USD/BGN (-0.7162, or strong)
GBP/BGN to USD/CHF (-0.7559, or strong)

1. During the examined period GBP/BGN moved strongly in one and the same direction with NZD/USD and EUR/USD, while moving strongly in the opposite direction compared to USD/JPY, USD/BGN and USD/CHF.

2. The correlation between GBP/BGN and DKK/BGN was insignificant.

3. GBP/BGN moved almost equally in one and the same direction with GBP/USD during the period in question.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for GBP/BGN are presented as follows:

Central Pivot Point – 2.4758
R1 – 2.4826
R2 – 2.4874
R3 – 2.4942

S1 – 2.4710
S2 – 2.4642
S3 – 2.4594

By using the traditional method of calculation again, the weekly pivot levels for GBP/BGN are presented as follows:

Central Pivot Point – 2.4842
R1 – 2.5079
R2 – 2.5380
R3 – 2.5617

S1 – 2.4541
S2 – 2.4304
S3 – 2.4003