GBP/USD Price Forecast – Goldilocks job report brings risk appetite back

During the Friday session, the United States added 219,000 jobs, perhaps suggesting to some traders out there that the Federal Reserve would have to slow down its rate hike schedule. Whether this is true or not remains to be seen, but certainly it appears that the initial reaction to these numbers will continue to support a softer US dollar. · FX Empire

Christopher Lewis

Updated Fri, Jul 6, 2018, 9:43 PM

The British pound has rallied after the 219,000 jobs added for the month of June has been reported. However, we are facing significant resistance above, especially in the form of the 1.33 level, so at this point it remains to be seen whether we can break above there, if we do though that would obviously be a very bullish sign. At that point, I would expect the market to go looking towards the 1.35 level next. Ultimately, I believe that we will continue to see a lot of noise and of course later during the Friday session we will have to worry about economic embargoes and trade tariffs extending.

I believe that the 1.33 level is rather crucial, and that it extends to the 1.3350 level. Once we clear that the 1.35 level will start to act as a target. Until then, I suspect markets will very quickly turn around and start focusing on trade wars and the concerns of those. If that’s the case, this could be a blip on the radar and we could find ourselves going right back down. Regardless what happens next, I think volatility is most certainly going to be what you can expect, as we will be moving upon headlines. Beyond that, I wonder how many people are willing to hang onto this position through the weekend? There is still significant risk to the downside.