Forex Market: GBP/BGN trading outlook for May 9th

Friday’s trade saw GBP/BGN within the range of 2.4689-2.4872. The pair closed at 2.4737, shedding 0.39% on a daily basis. It has been the 7th drop in the past 21 trading days. In weekly terms, GBP/BGN lost 0.85% of its value during the current week. It has been the 13th drop in the past 18 weeks, a second consecutive one and also the sharpest one since the week ended on April 10th, when the cross fell 0.85%. The exotic pair has depreciated 0.81% so far during the current month, following a 1.09% surge in April.

No relevant macroeconomic reports and other events, which may influence GBP/BGN trading, are scheduled on Monday (May 9th).

Correlation with other currency pairs

Taking into account the business week ended on May 6th 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 AUD/USD (0.7076, or strong)
GBP/BGN to NZD/USD (0.6899, or strong)
GBP/BGN to GBP/USD (0.6553, or strong)
GBP/BGN to EUR/USD (0.1276, or weak)
GBP/BGN to USD/CHF (-0.0447, or very weak)
GBP/BGN to CHF/BGN (-0.0923, or very weak)
GBP/BGN to USD/BGN (-0.1441, or weak)
GBP/BGN to USD/JPY (-0.3227, or moderate)
GBP/BGN to DKK/BGN (-0.6230, or strong)
GBP/BGN to USD/CAD (-0.6472, or strong)

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

2. GBP/BGN moved strongly in the opposite direction compared to DKK/BGN and USD/CAD during the week.

3. GBP/BGN moved almost independently compared to USD/CHF and CHF/BGN during the period in question.

4. The correlation between GBP/BGN and EUR/USD, GBP/BGN and USD/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 – 2.4766
R1 – 2.4843
R2 – 2.4949
R3 – 2.5026

S1 – 2.4660
S2 – 2.4583
S3 – 2.4477

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

Central Pivot Point – 2.4784
R1 – 2.4968
R2 – 2.5199
R3 – 2.5383

S1 – 2.4553
S2 – 2.4369
S3 – 2.4138