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The British pound has been extraordinarily noisy after the interest rate announcement and following statement. The market seems to be a bit confused right now, but what I do see is that there is a significant demand level underneath at the 1.30 level. It looks as if it is trying to offer enough support to keep the market alive, so I believe that now we are looking ahead to the jobs figure. I believe that the 1.30 level should be rather supportive though and based upon the massive one hour hammer that just printed, it looks as if a breakdown below that level would be a major change of events.
On the whole, I do believe that this pair goes higher, because of the reaction. As you can see on the chart, I have every 100 pips marked off, and it seems that these three levels are going to be the areas that you need to be paying attention to over the next several days. Quite often, jobs numbers move the markets drastically, only to end up being somewhat unchanged. It is because of that phenomenon that I believe that we will probably end up somewhere in the 1.3120 area, as it seems to be a bit of an equilibrium currently. After we get the jobs number out of the way, it becomes quiet summer trading, so keep that in mind. It’s very possible that this will be much ado about nothing by the time we look back at these days.
GBP/USD Video 03.08.18
This article was originally posted on FX Empire