GBP/USD Waiting the manipulation before the big short 1.2450!

10 בדצמ׳ 2023

The GBP/USD recovered towards the 1.2550 level after coming close to 1.2500 in the latter part of the day, following the Nonfarm Payrolls report which recorded 199,000 new positions in November. Despite the recent rebound, the pair is on the verge of ending a three-week winning streak. GBP/USD closed in positive territory on Thursday but failed to attract additional buyers early on Friday. Currently, the pair is hovering below 1.2600, with market focus shifting to November labor market data from the United States.

An improvement in risk sentiment caused a loss of interest in the US Dollar (USD) on Thursday, helping GBP/USD record modest daily gains. On Friday morning, US stock index futures are mixed, suggesting that investors remain cautious.

The monthly employment report from the US Bureau of Labor Statistics forecasts an increase of 180,000 in Nonfarm Payrolls (NFP) for November. Earlier this week, employment-related data from the US indicated more favorable conditions in the labor market. According to the CME Group's FedWatch tool, markets are currently pricing in a nearly 60% probability that the Fed will lower the policy rate by 25 basis points in March.

Furthermore, on the daily chart, it's possible to observe how the price has broken a bearish channel, and in my opinion, there could be an upward manipulation with a false breakout around 1.26 before returning to push downwards with a target of 1.2450. Wishing everyone a good evening, greetings from Nicola.