The GBP/USD pair rose during the session on Wednesday, but he did not break the top of the shooting star from Tuesday. Because of this, I feel that this market is still struggling to go higher, and that of course makes sense with Friday being nonfarm payroll day. Because of that, the volatility in the market will probably absolutely disappear for the session today, and as a result I'm not trading this market.
Of course, things could happen and if we do break above the 1.63 handle, I would consider that a major breakout. On top of that, the 1.60 level to the downside is the "floor" in this market as far as I can tell, and as a result I would be willing to buy anything that looks remotely supported down in that area as it should bring in the buyers en masse.
Quiet 24 hours, chaotic Friday.
The markets will more than likely be quiet like I said, but Friday will cause chaos. After all, the Federal Reserve is watching the employment numbers with great interest as the question as to tapering off of quantitative easing remains. Because of this, I feel that this market will be extremely erratic and it's probably safer to buy it after the close on Friday simply because at that point time we should have a clear picture of what's going on and the reaction of the participants will have been shown.
Expect a lot of confusion in the beginning, because there is the headline number that everybody sees right away, but there are also all the details in the report that people tend to pour over during the session. That being the case, it would not be surprising at all to see a little bit of a reversal in this marketplace as time went on during the day. Also, there are a lot of big participants that simply will not be in the market, so liquidity will be a problem as per usual on a nonfarm payroll Friday.
