GBP/USD Price Forecast – British pound rallies against the greenback for Thursday

The British pound rallied a bit during the day on Thursday but gave back a bit as the Americans came on board. I think at this point the markets are probably a bit of verse to taking on a lot of risk, because quite frankly the jobs number will obviously throw the market around. Beyond that, the rumor that spread around the marketplace that the British and the Germans were starting to soften their stance towards each other in the negotiation has been denied by the Germans since. We ended up closing at basically the same level as the gap for the day, and now it starts look like it’s offering resistance from the beginning of the week. Ultimately, I think that we will probably drift lower in the short term but I think there is a significant amount of support near the 1.29 level as well.

I believe that some of this is probably going to be along the lines of position squaring as people are concerned about the jobs number, as it will cause the markets to go erratic. However, I would suspect that there is probably a significant amount of confusion in the market as well. After all, after that type of move a lot of people are going to be a bit nervous to short the market, but after the Germans flat out denying the rumor, would you be a buyer either? I anticipate that we will probably see this market drift a bit lower, just as we did last week. However, once there is a deal actually announced, you can already see what’s about to happen.

GBP/USD Video 07.09.18