Forex Market: GBP/BGN trading outlook for July 18th

Friday’s trade saw GBP/BGN within the range of 2.3226-2.3681. The pair closed at 2.3388, shedding 0.36% compared to Thursdays close. It has been the 9th drop in the past 21 trading days. In weekly terms, GBP/BGN added 1.99% to its value during the current week. It has been the 10th gain in the past 28 weeks and also the steepest one since the week ended on April 24th, when the pair rose 2.02%. The exotic cross has edged down 0.13% so far during the current month, following a 7.84% slump in June.

No relevant macroeconomic reports and other events, which may influence GBP/BGN, are scheduled on Monday (July 18th).

Correlation with other currency pairs

Taking into account the business week ended on July 15th 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 (0.9549, or very strong)
GBP/BGN to USD/JPY (0.9375, or very strong)
GBP/BGN to AUD/USD (0.8172, or very strong)
GBP/BGN to EUR/USD (0.2298, or weak)
GBP/BGN to USD/CHF (0.0492, or very weak)
GBP/BGN to NZD/USD (-0.1565, or weak)
GBP/BGN to USD/BGN (-0.2067, or weak)
GBP/BGN to CHF/BGN (-0.2229, or weak)
GBP/BGN to USD/CAD (-0.7340, or strong)

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

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

3. GBP/BGN moved almost independently compared to USD/CHF during the week.

4. GBP/BGN moved strongly in the opposite direction compared to 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 – 2.3432
R1 – 2.3637
R2 – 2.3887
R3 – 2.4092
R4 – 2.4298

S1 – 2.3182
S2 – 2.2977
S3 – 2.2727
S4 – 2.2478

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

Central Pivot Point – 2.3301
R1 – 2.3814
R2 – 2.4239
R3 – 2.4752
R4 – 2.5264

S1 – 2.2876
S2 – 2.2363
S3 – 2.1938
S4 – 2.1512

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