The GBP/USD pair fell during the Thursday session, slamming into the 1.55 level. This was the bottom of the recent consolidation area, and the fact that we bounced back above it doesn’t surprise me. In fact, it says to me that we aren’t ready to go anywhere yet. After all, we had an interest rate statement coming out of London, and since then it did move this market it also tells me that the employment numbers out of the United States will probably be more of an influence.
When I look at this chart, I see the uptrend line and that of course catches my attention as well. Is just below the 1.55 support barrier, so this point time I think that there are far too me things working against a break down for me to start selling. In fact, after the Nonfarm Payroll announcement, I am looking for massive selloff knee-jerk reactions to start buying.
In the end, it will all be the same
I believe that in the end we will stay within this consolidation area. I’ve seen far too many Nonfarm Payroll Fridays to think that it will be any different. Truthfully what tends to happen is we get a knee-jerk reaction in one direction, a complete reversal of that and a continuation in the other direction, and then eventually end up somewhat unchanged. Gone are the days of massive employment announcements that move the markets and make everybody rich. Ultimately at this point in time, it basically just chops around and annoys most people.
I think that the consolidation continues not only because of the Nonfarm Payroll Numbers, but the fact is that we are in the wrong time of year to anticipate severe moves. However, I do think that in a few weeks we will see the liquidity come back into the marketplace, and that will more than likely move this pair. At this point in time, I think we go higher given enough time. I am hoping for a short-term buying opportunity today, but that’s about all I anticipate.
