Forex Market: GBP/BGN trading outlook for June 20th

Friday’s trade saw GBP/BGN within the range of 2.4720-2.4942. The pair closed at 2.4900, rising 0.61% on a daily basis. It has been the 10th gain in the past 22 trading days, a third consecutive one and also the steepest one since June 7th, when the exotic cross rose 0.66%. The daily high has been the highest level since June 10th, when a high of 2.5051 was registered. In weekly terms, GBP/BGN added 0.44% to its value during the current week. It has been the 9th gain in the past 24 weeks. The exotic cross has depreciated 2.13% so far during the current month, following a 1.95% surge in May. The latter has been the strongest monthly performance since October 2015, when the pair advanced 3.55%.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (June 20th).

Correlation with other currency pairs

Taking into account the business week ended on June 17th 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 (0.9145, or very strong)
GBP/BGN to EUR/USD (0.5908, or strong)
GBP/BGN to NZD/USD (0.4339, or moderate)
GBP/BGN to AUD/USD (0.4022, or moderate)
GBP/BGN to USD/CAD (0.1887, or weak)
GBP/BGN to CHF/BGN (-0.1410, or weak)
GBP/BGN to USD/BGN (-0.4933, or moderate)
GBP/BGN to USD/CHF (-0.5046, or strong)
GBP/BGN to USD/JPY (-0.8765, or very strong)

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

2. GBP/BGN moved almost equally in one and the same direction with GBP/USD during the week.

3. GBP/BGN moved almost equally in the opposite direction compared to USD/JPY during the period in question.

4. The correlation between GBP/BGN and USD/CAD, GBP/BGN and CHF/BGN was insignificant.

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 – 2.4854
R1 – 2.4988
R2 – 2.5076
R3 – 2.5210

S1 – 2.4766
S2 – 2.4632
S3 – 2.4544

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

Central Pivot Point – 2.4766
R1 – 2.5076
R2 – 2.5252
R3 – 2.5562

S1 – 2.4590
S2 – 2.4280
S3 – 2.4104

In monthly terms, for GBP/BGN we have the following pivots:

Central Pivot Point – 2.5297
R1 – 2.5995
R2 – 2.6553
R3 – 2.7251

S1 – 2.4739
S2 – 2.4041
S3 – 2.3483