British pound very noisy during the trading session on Friday
The British pound has rallied a bit during the day on Friday before bouncing around during the jobs number as you would expect. Ultimately, you can see that the 1.33 level has been a bit of a magnet for price, and I think we continue to see price dance back and forth around here. If we can break above the 1.3350 level, then we might be able to go higher, but I think the upside is somewhat limited as interest rates in America dictate that this pair should continue to go lower over the longer-term.
I believe that this pair has significant support near the 1.3250 level as well, so if we were to break down below there could continue the longer-term downtrend that we have seen for so long. I believe that this market will continue to be noisy, but the US dollar is probably the biggest driver of everything. Pay attention to the 10 year notes in the United States, so if we continue to see higher interest rates, that should continue to favor the greenback longer-term. While the Bank of England is likely to raise interest rates sometime over the next year, the Federal Reserve is more likely to raise interest rates at least three times, if not four times.
Ultimately, this is a market that I think continues to see a lot of noise, but I think you should pay attention to interest rates more than anything else, and I do believe that the longer-term traders will continue to push this market much lower, perhaps aiming towards the 1.30 level underneath.