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Pound Stabilizes Around 1.56

Hourly

The pound cheapened to the 135th degree against the USD. Pressure on the pound came from weak PMI data from the UK and decent indicators on the US.

The pound/dollar is trading around 1.5615. The 38.2% level is broken on the daily. The road is now open to the trend line at 1.5555. Today the payrolls are out and it’s not clear what will happen after 15:30 EET. Yesterday they were buying dollar in expectance of optimistic NFP data. Due to this I’m expecting a sideways trend until 15:30 EET. I’m not excluding a depart to the LB.

Daily

The upward triangle has become clearer. Now the GBP/USD is shifting towards the trend line at 1.5555/61. Be prepared for the pound falling to 1.5500 if the payrolls’ numbers exceed 250,000. If the indicator is weaker than forecasted, we could see a recoil to 1.57. If you don’t understand what is going on on the market, it’s better to give today a miss. Volatility is expected to be high at 15:30.

Weekly

The body of the weekly candle is red at the moment. If the sellers manage to strengthen at the current level after the publication of the NFP, next week I’ll be waiting for a fall in the pound to 1.5350.

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