The British pound has rallied significantly during the day on Thursday, reaching towards the 1.3250 level, on its way to go test the 1.33 level for resistance. Currently, it looks as if there is a small channel on the hourly chart, and most certainly it looks as if the momentum is with the buying side. I don’t have any interest in shorting this market, at least not until we break back down below the 1.32 level, but keep in mind that today will be the jobs number, and that of course will cause a lot of volatility.
In the short run, the market will probably be very quiet, as agents won’t have the ability to react to the jobs number, and I think that it’s only a matter of time before the volatility picks up, right around 8:30 AM Eastern Standard Time. At this point though, I think that we are more than likely going to see some type of back-and-forth fight as per usual, and I think that the market will be very difficult to deal with for those who aren’t as experience. I would use small positions, and I would be more than willing to take profits relatively soon, and unless there is some type of massive shock to the system involving the numbers. Remember, not only do we get jobs numbers today, but we will more than likely get some type of Chinese reaction to US tariffs, so risk appetite is going to be all over the board.