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

Friday’s trade saw GBP/BGN within the range of 2.2697-2.3005. The pair closed at 2.2924, rising 0.42% compared to Thursdays close. It has been the 11th gain in the past 21 trading days and also a second consecutive one. In weekly terms, GBP/BGN lost 1.58% of its value during the current week. It has been the 18th drop in the past 27 weeks and also a third consecutive one. The exotic cross has slumped 2.21% so far during the current month, following a 7.84% drop in June.

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

Correlation with other currency pairs

Taking into account the business week ended on July 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 (0.9799, or very strong)
GBP/BGN to USD/JPY (0.8279, or very strong)
GBP/BGN to EUR/USD (0.7541, or strong)
GBP/BGN to AUD/USD (0.2099, or weak)
GBP/BGN to NZD/USD (0.1984, or weak)
GBP/BGN to CHF/BGN (-0.1960, or weak)
GBP/BGN to USD/CHF (-0.5426, or strong)
GBP/BGN to USD/BGN (-0.7732, or strong)
GBP/BGN to USD/CAD (-0.7866, or strong)

1. During the examined period GBP/BGN moved almost equally in one and the same direction with USD/JPY and GBP/USD. This relationship has been the most pronounced between GBP/BGN and GBP/USD, with the correlation between the two pairs being almost perfect.

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

3. The correlation between GBP/BGN and AUD/USD, GBP/BGN and NZD/USD, GBP/BGN and CHF/BGN was insignificant.

4. GBP/BGN moved strongly in the opposite direction compared to USD/CHF, USD/BGN and USD/CAD during the period in question.

Daily, Weekly and Monthly Pivot Levels

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

Central Pivot Point – 2.2875
R1 – 2.3054
R2 – 2.3183
R3 – 2.3362
R4 – 2.3540

S1 – 2.2746
S2 – 2.2567
S3 – 2.2438
S4 – 2.2308

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

Central Pivot Point – 2.3004
R1 – 2.3342
R2 – 2.3759
R3 – 2.4097
R4 – 2.4434

S1 – 2.2587
S2 – 2.2249
S3 – 2.1832
S4 – 2.1414

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

Central Pivot Point – 2.4168
R1 – 2.5015
R2 – 2.6590
R3 – 2.7437
R4 – 2.8285

S1 – 2.2593
S2 – 2.1746
S3 – 2.0171
S4 – 1.8597