GBP/USD Price Forecast – British Pound Rallies After Strong Jobs Numbers

The British pound has rallied significantly during the trading session on Tuesday, breaking above the top of the hammer from the Monday session, and of course the 50 day EMA. Both of these are a very bullish sign, as employment figures came out much better than anticipated. That being said, we have still not recaptured the highs from the Friday session, and if we did that could be a very bullish sign. All things being equal, this is a market that could then go looking towards the 1.35 handle given enough time. That would not be an easy move, but I do believe it would be a move that would eventually happen.

GBP/USD  Video 22.01.20

The alternate scenario of course is that we were to break down below the hammer from the Monday session, which would of course be relatively negative. If that’s going to be the case, then it’s possible that we could go to the 1.29 level, and then possibly even the 1.27 level area as it features the 200 day EMA. All things being equal though, I do believe that the buyers will eventually try to push this market higher unless of course the Bank of England starts cutting rates, something that is a real threat. That is perhaps why we are seen so much in the way of choppy and erratic behavior in this currency pair. Ultimately, this is a market that is still in an uptrend, albeit barely hanging on to it. I like the idea of buying dips in general, but recognize that there might be easier trade out there to be had.

Please let us know what you think in the comments below