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GBP/USD Minimal Price Action

By: Doug Rosen

Yesterday price action was very wild. The daily candle ended up as a spinning top. It has been a wild week due to all the ECB action. Currently we are around 5 hours before the Non-Farm Payroll report and until that release the market action will be minimal. When it is released, as always there will be much volatility in the market. This is usually caused mostly by profit taking and speculation.

Looking at the daily time frame I can see that not only was yesterday a spinning top, but price once again precisely touched the 50.0 fib of the previous move down then tanked. That fib zone also coincided with the monthly central pivot and the 233 ema.

GBP/USD Daily 12/2/11

On the 4 hour time frame price is currently seated just on the 13 ema.

GBP/USD 4 Hour 12/2/11

On the hourly time frame the Bollinger bands are closed and developing into a tunnel as it looks to me and the ema's are all coming together so obviously no real price action to speak of. Price is sitting on the weekly R1 pivot at 1.5691

GBP/USD 1 Hour 12/2/11

On the 15 minute time frame the Bollinger bands are extremely narrow and the ema's are all bunched together so just as most other major pairs, the trading community is waiting for the NFP report before entering any positions. Price is currently right on the daily central pivot at 1.5693 The GBP/USD is closely correlated with Silver today so keep an eye on Silver while planning trades for the GBP/USD.

Doug Rosen
About Doug Rosen
Doug Rosen is a Florida-based Forex trader who became a skilled technical trader through 3 years of intense practice and self-teaching. He now coaches a live trading room and analyzes the market on forextradeplans.com.

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