The data about the US Change in the Non-Farm Payrolls will come out in a few hours. This data usually has a pretty strong effect on the market as a catalyst of large movements at the very least.
As I read the economic calendar, I see that the expectation is for the data to be worse than last month, which should cause a weakening of the USD.
The GBP/USD chart, however, makes me expect something different:
On the weekly time frame the pair has been consolidating since October 2016 and sooner or later there should be a break out in either direction.
It is obvious that after the pair closed last week with a doji bar on the weekly time frame (something which is interpreted as indecision) it started falling.
My expectation is that move to the downside will deepen and we will see another return to the support at 1.21.
In case the pair renews its move to the upside the first resistance is at 1.2700.
We’ll know whether this prognosis is correct in a few hours.
Thank you for the tip.
ReplyDeleteVery helpful analysis!
ReplyDeleteGood insight.
ReplyDeleteGood point, I'll keep watching.
ReplyDeleteInteresting to see how this develops.
ReplyDeleteThe dollar is in fact getting stronger.
ReplyDeleteGood post!
ReplyDeleteGood post.
ReplyDelete