NFP analysis for the first Friday of the month! The expectation is for an increase of 295K with last month released at 528K (The previous month's forecast was 250K). And relatively unchanged in terms of the unemployment rate and average hourly earnings . If the data is released better than expected, the USD should strengthen.
Seriously, how low can the GBPUSD go?
Overnight the GBPUSD spiked lower to the 1.15 support level before consolidating at 1.1550 for today, in the leadup to the NFP event. If the DXY signals further strength, more downside on the GBPUSD is expected.
However, look out for highly volatile price action where the price could spike lower, bounce, consolidate and spike again. The key support level for the GBPUSD is at the 1.14 level and at the bottom of the channel.
If there is weakness in the DXY, the GBPUSD could bounce towards 1.165 but it would be dangerous to buy into such a strong downtrend.
Seriously, how low can the GBPUSD go?
Overnight the GBPUSD spiked lower to the 1.15 support level before consolidating at 1.1550 for today, in the leadup to the NFP event. If the DXY signals further strength, more downside on the GBPUSD is expected.
However, look out for highly volatile price action where the price could spike lower, bounce, consolidate and spike again. The key support level for the GBPUSD is at the 1.14 level and at the bottom of the channel.
If there is weakness in the DXY, the GBPUSD could bounce towards 1.165 but it would be dangerous to buy into such a strong downtrend.
