Forex Market: GBP/BGN trading outlook for April 11th

Friday’s trade saw GBP/BGN within the range of 2.4172-2.4283. The pair closed at 2.4230, edging up 0.28% on a daily basis. It has been the 9th gain in the past 22 trading days and also the steepest one since March 28th, when the pair went up 0.51%. In weekly terms, GBP/BGN lost 0.85% of its value during the current week. It has been the 11th drop in the past 14 weeks and also a fifth consecutive one. GBP/BGN has depreciated 1.83% so far during the current month, following four successive months of decline. In March the exotic cross went down 1.40%.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (April 11th).

Correlation with other currency pairs

Taking into account the week ended on April 8th 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 (0.9890, or very strong)
GBP/BGN to USD/JPY (0.8934, or very strong)
GBP/BGN to USD/CHF (0.8322, or very strong)
GBP/BGN to NZD/USD (0.7460, or strong)
GBP/BGN to DKK/BGN (0.6756, or strong)
GBP/BGN to AUD/USD (0.6485, or strong)
GBP/BGN to EUR/USD (0.1141, or weak)
GBP/BGN to USD/CAD (0.0293, or very weak)
GBP/BGN to USD/BGN (-0.0849, or very weak)
GBP/BGN to CHF/BGN (-0.8968, or very strong)

1. During the examined period GBP/BGN moved strongly in one and the same direction with AUD/USD, DKK/BGN and NZD/USD.

2. The correlation between GBP/BGN and EUR/USD was insignificant.

3. GBP/BGN moved almost equally in one and the same direction with USD/CHF, USD/JPY and GBP/USD during the period in question. This relationship has been the most pronounced between GBP/BGN and GBP/USD.

4. GBP/BGN moved almost equally in the opposite direction compared to CHF/BGN during the week.

5. GBP/BGN moved almost independently compared to USD/CAD and USD/BGN. The correlation between GBP/BGN and USD/CAD was almost non-existent.

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 – 2.4228
R1 – 2.4285
R2 – 2.4339
R3 – 2.4396

S1 – 2.4174
S2 – 2.4117
S3 – 2.4063

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

Central Pivot Point – 2.4306
R1 – 2.4488
R2 – 2.4747
R3 – 2.4929

S1 – 2.4047
S2 – 2.3865
S3 – 2.3606