The US NFP data turned out to be even more positive than what was expected and logically all USD-related currency pairs moved in favour of the American currency. My expectations for some pairs (like USD/JPY and XAU/USD) were fulfilled, but others (such as the ones about GBP/USD and USD/CAD) were proven wrong.
GBP/USD in particular had formed a “hanging man” bar on the monthly time frame, which, as usual, was a trustworthy signal. The pair could not break out above the high at 1.30296 and started falling.
For now the pair remains within the wide range, and I think the next target to the downside will be the zone 1.2830 – 1.2800.
To the upside the scenario for a rally to 1.33180 – 1.3200 remains possible, but for the moment its probability is decreasing.
Interesting to see how this develops.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteVery useful analysis, thank you!
ReplyDeleteLet's see what effect the fundamentals next week will have on them.
ReplyDeleteThe downtrend looks intact.
ReplyDeleteGood point! I'll keep an eye on it.
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ReplyDeleteI agree with your point of view.
ReplyDelete