Forex Market: GBP/USD daily trading outlook

Friday’s trade saw GBP/USD within the range of 1.4177-1.4474. The pair closed at 1.4258, plummeting 1.39% compared to Thursdays close. It has been the 33rd drop in the past 56 trading days, a third consecutive one and also the steepest one since February 28th, when the pair dropped 1.78%. The daily low has been the lowest level since April 18th, when a low of 1.4129 was registered. In weekly terms, GBP/USD lost 1.80% of its value during the past week. It has been the 11th drop in the past 23 weeks, a second consecutive one and also the sharpest one since the week ended on March 27th. The major pair has fallen 1.95% so far in June, following a 0.92% drop in the prior month.

At 6:57 GMT today GBP/USD was inching down 0.04% on the day to trade at 1.4184. The pair touched a daily high at 1.4272 during early Asian trade, undershooting the daily R1 level, and a daily low at 1.4158 during the early phase of the Asian trading session as well.

No relevant macroeconomic reports and other events, which may influence GBP/USD trading, are scheduled on Monday (June 13th).

Correlation with other Majors

Taking into account the business week ended on June 10th and the daily closing levels of the major currency pairs, we come to the following conclusions in regard to the strength of relationship:

GBP/USD to EUR/USD (0.8604, or very strong)
GBP/USD to AUD/USD (0.7380, or strong)
GBP/USD to USD/JPY (0.3497, or moderate)
GBP/USD to NZD/USD (-0.2918, or weak)
GBP/USD to USD/CHF (-0.3202, or moderate)
GBP/USD to USD/CAD (-0.5424, or strong)

1. During the examined period GBP/USD moved almost equally in one and the same direction with EUR/USD.

2. GBP/USD moved strongly in one and the same direction with AUD/USD during the past week, while moving strongly in the opposite direction compared to USD/CAD.

3. The correlation between GBP/USD and NZD/USD was insignificant.

Daily, Weekly and Monthly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:

R1 – 1.4285
R2 – 1.4312
R3 (range resistance) – 1.4340
R4 (range breakout) – 1.4421

S1 – 1.4231
S2 – 1.4204
S3 (range support) – 1.4176
S4 (range breakout) – 1.4095

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

Central Pivot Point – 1.4360
R1 – 1.4543
R2 – 1.4828
R3 – 1.5011

S1 – 1.4075
S2 – 1.3892
S3 – 1.3607

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

Central Pivot Point – 1.4526
R1 – 1.4722
R2 – 1.4966
R3 – 1.5162

S1 – 1.4282
S2 – 1.4086
S3 – 1.3842