The GBP/USD pair fell during the session on Thursday, slamming into the 1.60 handle again, but bounced enough to form a nice looking hammer. Because of this, it does look like the Pound might get a little bit of traction here, but we need to see what happens with the nonfarm payroll numbers. If the numbers come out lighter than anticipated, this pair could go higher. However, with the ECB cutting rates one has to wonder whether or not the correlation between Britain and Europe doesn’t break down as a lot of the British recovery would’ve been based upon exports into the continent. With that being the case, we feel that although there is an upward bias to this pair, it might be best to sit out at the moment.
Written by FX Empire