The British pound has been very technical in this contract for speculation. There are several versions and speculations as to why the pound has become calmer, but we will not consider them now.
Now it is more valuable to determine the important support levels and calculate the probable scenarios for the December contract’s end.
The support at 1.185 – 1.2 was formed by the heavy buying in early November. During the week, we saw the “big bulls” making large buy trades on the high of the contract at that time. Most in this range will lock in a buy (short) or open a sell trade – the predicted activity is only good for the guys looking for a flow of sell orders for their sure buys.
If the subject of volume imbalance and the interaction of different order types during an auction is of interest, write it in the comment section and I’ll try to go into more detail afterwards.
Since the end of September the widening of the price range was on the side of the buyers, and only one time there was a significant correction. The trend of this contract is steadily buying and even now, as hard as it is to buy, they do it.
Regarding end-of-contract scenarios – there is actually one week left before we move to MAR23. Now the price will once again try to take a maximum and this is probably the last attempt, as traders who know how to earn in the financial market have already planned the New Year shopping for the whole family, and this will be a good end to a difficult 2022. Trade fixes are inevitable and a correction of this contract is about to start – don’t miss the moment to take the cherry off the cake. All scenarios and levels are shown on the slide above.
Author / trader Mikhail Lemah