British pound falls significantly during the trading session on Thursday

The British pound has broken down during the session on Thursday, slicing through the 1.40 level underneath. That’s an area that has been important in both directions, so it doesn’t surprise me that we have stalled a bit after breaking through it. A break above the 1.40 level should eventually send this market towards the 1.41 handle, and of course we have the jobs number coming out today which will be extraordinarily influential as to where we go next. The US dollar of course has a lot of sensitivity to the jobs figures, and I think that if we get a “risk on” move, it’s likely that we could rally from here. I anticipate a lot of volatility, so quite frankly it might be easier to trade the GBP/USD pair on the daily chart, letting the Friday session calm down and close before putting money to work.

If we do break down below the 1.39 handle, the market should break down to the 1.38 level underneath. Longer-term though, I do believe that the British pound will continue to attract a lot of money, and therefore it’s something you should be paying attention to. I think that ultimately, we will go looking towards the 1.43 level above, but a bit of stability is probably needed before we can make that trade. Beyond that, we could even go as high as the 1.45 level. Wait for the daily close, and I will of course keep you up-to-date as to what I think here at daily at Eracash.