GBP/USD Forecast April 6, 2012, Technical Analysis

The GBP/USD pair fell hard on Thursday as the “risk off” theme came back into the markets. The 1.58 area is just below, and it looks like it may have held as support by the end of the session. However, with the Non-Farm Payroll announcement coming out today, this could change quickly.

The 200 day EMA is just below, and if it gets broken, we think that might have trend traders shorting this pair as well. Because of this, we are very interested in the daily close for Friday. The pair won’t be one we trade in the thin markets, but the reaction will be very telling. The close will be vital, and we are ready to pounce on a breakdown in this pair. The Wednesday session producing a hammer had us thinking that the long side might win – but this candle was pretty bearish, and as a result we are thinking down. However, we need the daily close to prove it, somewhere below the 1.58 level.

GBP/USD Forecast April 6, 2012, Technical Analysis

Written by FX Empire