- The British pound has gone back and forth during the trading session on Thursday as we wait for the Non-Foreign Payroll announcement on Friday.
- After all, that will have a major influence on where markets go, as traders are trying to figure out what to do with the US dollar in general.
- Ultimately, the British pound is a currency that has done fairly well against the US dollar over the last several months, but recently, we have seen more of a sideways action than anything else.
Technical Analysis
The technical analysis for this market is relatively flat over the last couple of weeks, but there are a couple of levels that I will be looking at very closely. The first one would be the 1.34 level, which has offered support over the last couple weeks, and previously has been significant resistance previously. If we were to break down below the last couple of candlesticks, then we could see the British pound drop down to the 1.32 level. That’s an area that’s been support, but we also have the 200 Day EMA, so ultimately this is a situation where we have a lot of interest.
If we were to break to the upside, and break above the 50 Day EMA, the market is likely to go looking at the 1.36 level. The 1.36 level is a major resistance barrier, and is a bit important going forward, if we can break above there, then it’s likely that we really could see the US dollar fall, and the British pound really started to take off.
I think at this point we need to be very cautious, as there is a lot of back and forth noise. In general, this is a market that I think continues to see a lot of volatility, but as things stand right now, we are basically in the middle of the larger 400 pip trading range.
Ready to trade our daily GBP/USD Forex forecast? Here’s some of the best forex broker UK reviews to check out.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
