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GBP/USD Forecast 08/11/2013

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GBP/USD Chart 08/11/2013
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The Pound Sterling is concluding the week on a positive note

With this week's trading coming to an end we still have major news to digest and opportunities to profit from binary options investments. The Pound sterling has been trading on a positive note all week long and we recommend buying calls on dips.

The GBP/USD pair has been trading between 1.60 and 1.61 for the past couple of days. That is substantially higher than the open on Monday morning which was much closer to 1.59.

The GBP/USD binary options forex pair is providing us with fresh opportunities today as we are coming to the Friday trading session. The Pound has been the strongest performer from the major currencies this week with it being higher against all of the majors - the JPY, the EUR and the USD.

Yesterday's price action in the pair was largely influenced by liquidity flows from the EUR/USD binary options forex pair after the European Central Bank has surprised the markets by cutting the interest rates to 0.25 basis points. The Pound has dropped initially to 1.6010 only to recover swiftly to levels above 1.6110.

Early European trading has been subdued, as all of the traders are expecting the results from the employment survey in the United States which will be released at 13:30 GMT. Expectations are that the US jobs market created 125,000 jobs during the month of October.

We are likely to see very much volatility especially after the number is released and it is widely dependent on the outcome of the report, but for now we would be biased to buy calls if the price dips towards 1.6040-50 area. Should the recent tops above 1.6110 be broken we expect the pair to maintain traction and test resistance levels above - at 1.6150 and 1.6180.

Comments

fxZero's picture

Thanks to you guys I had a great week, see you next week on the FX market ;)

fxZero
Toni H.'s picture

Thanks Matthew, you too ;)

Toni H.
Matt T.'s picture

As it seems, the numbers out of the US were indeed way stronger than expected - 204,000 jobs for the month of October, so risks to the GBP/USD downside have increased - this makes us very cautious in trading until the end of the day. We prefer to wait this one out and trade next week! Have a great weekend!

Matt T.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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