The GBP/USD pair bounced on Friday as the Non-Farm Payroll numbers came out weak in America. The miss was by 80,000 jobs, and this sent people away from the Dollar in general. Adding to the upward pressure, the 200 day EMA is sitting just below the close form Thursday, so the bounce is also something that the trend traders will take notice of as well.
Below all of that is the 1.58 level, an area that has been supportive in the past. The bounce was expected, but the 1.60 level above will more than likely be resistive. The market is currently trading between these two levels, and we are willing to wait until we break below the 1.58 level on a daily close in order to sell. A break of the 1.6050 level – the recent highs – has us buying this pair. Until then, we are simply waiting.
Written by FX Empire