GBP/USD Is Going Low

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After the unexpected burst of positivity from Fed before the December meeting, Chicago Fed President Evans’ was next to chime in with a headline overnight, adding to the chorus of Fed hawks asking for a hike to wrap the calendar year.

As the NFP Friday night draws near, we also can see some mixed economic data on our screens to accompany Evans’ comments. The unreliable as ever ADP number missed expectations a bit, but the ISM non-manufacturing activity index climbed its highest level since October 2015!

Overall markets have taken this combination as USD positive and Friday is set up for a hugely important release quite nicely.

With the British Pound being pounded (not even sorry for the pun) on the back of news that PM May has set a date for the United Kingdom’s withdrawal from the European Union, we had been watching how price would react to record low levels at 1.2792 on our Vantage FX MT4 charts.

GBP/USD daily

GBP/USD daily

You can see on the daily chart that from Tuesday morning when we published that blog, it has been all downhill from there, breaking support and holding at its new lows.

GBP/USD hourly

GBP/USD hourly

Zooming into the intra-day hourly chart, if you’re a bear then here are some obvious levels to watch for weakness as price inevitably pulls back up to re-test previous support as possible resistance.

If it’s in the direction of the higher time frame trend or after a major support/resistance level has held, these intra-day re-tests always offer great risk:reward in your trading.

Best of probabilities to you!

This Thursday

CNY Bank Holiday

AUD Trade Balance

USD Unemployment Claims

This is a guest post originally appeared on Vantage FX. Reposted with permission.

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