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Forex pairs in this Article » GBP/USD

The GBP/USD pair fell during the session on Thursday as the "risk off" trade came back into play in various currency markets. However, we have the nonfarm payroll number coming out today and this will typically move this pair. We still see the 1.60 level as potential support, and it should be noted that the candle after the end of the Thursday session did not managed to break down below it. Based upon the cluster from last week and the hammer as well, it certainly looks like a lot of buyers will step into the market at this point time. This is why several sessions ago I suggested that the shooting star is a candle that you may want to ignore even though it formed of the 1.61 handle, a logical place to see resistance. Long term bullishness I still see this is a long-term bullish market. This is predicated upon the ascending triangle that we have broken out of over the summer, the measured a move up to the 1.63 handle. We did in fact reach that target, and as a result have pullback since then. But when we fell back to the 1.58 handle, we found support which was originally the resistance that we broke out of while forming that very ascending triangle. This simply has become a breakout and pullback type of situation looking for support where there was once resistance.

Going forward, I think that the 1.60 level should be supportive, but even if it isn't the 1.58 level certainly will be. I like the fact that there is a hammer formed just below the 1.60 level, and this normally will suggest quite a bit of buying pressure in that general vicinity. Is because of this that I think any knee-jerk reaction to the nonfarm payrolls number that sells this pair off should be a buying opportunity by the end of the session. After all, I still believe in the story of this pair going to 1.70 sometime during the year 2013. As for selling this pair, I have absolutely no interest in doing so.

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