GBP/USD Forecast August 4, 2017, Technical Analysis

GBP/USD daily chart, August 04, 2017

The GBP/USD pair fell significantly during the day on Thursday, as the Bank of England suggested that interest rates are going to behind anytime soon. Because of this, it looks as if the market is going to be very volatile, and with the jobs number coming out today, it’s likely that there will be plenty of choppiness. As the Bank of England has suggested that interest rates may remain low, the jobs number will also give us an idea as to where the Federal Reserve may be going in the short term. Currently, looks as if a lot of traders are starting to suspect that the Federal Reserve can raise interest rates, so that has worked against the value of the dollar. However, the British pound has taken a significant hit as well. Because of this, this pair could be very volatile during the day as it could suddenly become a fight between 2 lightweights.

The 1.32 level

I believe that the 1.32 level is going to be a massive ceiling in the market, and if we break above there the British pound will continue to go much higher. Currently, I think that the market is probably going to be attracted to the 1.30 handle, as it is a nice, large, round, psychologically important figure. If the British pound cells off, that would be my target. I think that it is probably going to be very difficult and challenging market today, but certainly we have made a significant move lower and the British pound and expectations have been squelched.

Written by FX Empire