GBP/USD Forecast February 4, 2016, Technical Analysis

The GBP/USD pair initially fell during the day on Wednesday, but turned back around to shoot straight through the 1.45 handle. By doing so, it looks as if the market is ready to go much higher, perhaps testing the 1.48 level between now and the jobs number on Friday. The Bank of England looks set to be on the sidelines as far as interest-rate hikes are concerned because of the stronger than anticipated economic numbers coming out of London. With that being the case, and the fact that the US dollar is starting to really get pummeled, it makes sense that we could continue to see some bullishness in this marketplace. This point in time though, we would be a bit hesitant to enter a “buy-and-hold” type of situation.
We still see the 1.50 level is vital, and we will have to see what happens once we get there, if we even do. Keep in mind that the jobs number will have a massive effect on this market as well, so we will have to wait to see what happens next. A strong jobs number could turn money right back around into the US dollar has perhaps people would start to bet on the Federal Reserve continue to raise rates. There is a lot of skittishness in the market right now, so this point in time these moves do tend to be very volatile.
Ultimately, we will have to wait to see what happens and at this point time we believe that a move above the 1.50 level is not only a strong move, but it is a potential trend change. So having said that the next couple of days will be very crucial to the future of the GBP/USD pair. Financial concerns around the world and shocks via the economic headlines could also be a catalyst for this pair to start selling off again. However, it does look like we have broken out and should see continued bullish pressure in this particular market for at least the next session or so.