GBP/USD Price Forecast – British pound very noisy after jobs numberThe British pound was very noisy during the Friday session after the jobs number came out slightly lower than expected. However, there are a lot of concerns when it comes to Brexit, and of course political drama within the Conservative party and the United Kingdom.
The British pound has tested the 1.30 level, an area of significant support on longer-term charts. By doing so, I think it’s found a bit of a short-term bottom, and we could see a bit of a bounce from here. However, there is a lot of noise in the market, but after the jobs neighbor command on Friday, it looks as if there isn’t any appetite to put a lot of money to work. It is because of this exact reason that I think we will probably bounce. However, if we do close below the 1.29 level, that would be a massive sell signal, perhaps reaching down to the 1.25 handle.
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I believe that if we rally from here, there is a lot of noise above at the 1.31 handle that will be dealt with, and difficult to overcome. However, if we do then I think the British pound will continue to rally towards the 1.32 level after that. This is a market that will continue to be noisy, as there is so much in the way of headline risk out there when it comes to the British pound. Ultimately though, I do think that we bounce from here, or at least maybe lower levels. Quite frankly we are at very historically cheaper levels, and I think ultimately people will look at it as a buying opportunity. I know that a lot of the longer-term traders I speak to have been approaching this market as such.