Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Struggling to Hold Onto Gains

[ad_1]

The GBP/USD had a mixed trading session on Friday as it struggled to hold on to gains above the 1.25 level. The market saw a lot of resistance, especially since the 1.25 region had been important in the past. The Non-Farm Payroll announcement was also a major influence, but traders are likely to hesitate in their overall reaction due to liquidity being a major problem. Moreover, full liquidity will not be seen until traders return to the US on Monday, and until then, caution should be exercised in any positions taken.

  • The market continues to see many questions about the Federal Reserve’s future course of action, which has a significant impact on the US dollar.
  • Moreover, the British pound is a bit overstretched, which makes it likely that it may have to pull back.
  • If it falls below the 1.24 level, then it could drop down to the 50-Day EMA, which sits just above the 1.22 level.

Investors should also note the importance of the Non-Farm Payroll report in terms of the market’s expectations of the Federal Reserve’s future decisions. The employment situation can have a significant impact on inflation, so the market will closely monitor any developments. However, Friday is expected to be a “throwaway day,” and investors will likely wait until Monday to assess the market’s reaction.

If the market breaks down below the 1.24 level, then the 50-Day EMA could be a target. On the other hand, if the market were to turn around and break above the ¥125 level on a significant daily close, then the British pound could rise to the 1.2750 level. However, neither of these moves would necessarily be easy, I anticipate a lot of noise over the next several session as we try to discern the intentions of several central banks around the world.

In conclusion, the British pound experienced mixed trading on Friday, and the market faced significant resistance. The Non-Farm Payroll report and the Federal Reserve’s future decisions are likely to have a significant impact on the market. Investors should exercise caution until full liquidity returns on Monday. If the market breaks down below the 1.24 level, it could lead to a drop to the 50-Day EMA, but if it turns around and breaks above the ¥125 level, it could rise to the 1.2750 level.

GBPUSD

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.