Pound sideways against US dollar for Thursday

The British pound ultimately, there is an uptrend line just above there as well, which should offer a significant amount of resistance. I believe that if we could break above the uptrend line, then the market will continue the uptrend that we have been in for some time now. However, if we break down below the 1.3550 level, I think the market will probably go looking towards the 1.35 handle, and then below there. The market will be highly sensitive to the jobs number coming out today, because that of course will affect where the US dollar goes in general.

If the jobs number is strong, then I anticipate that we will break down below the 1.35 handle, which is a sign that we are going to go much lower. I believe that the market would go looking towards the 1.3250 level underneath. If we broke to the upside, we could go to the 1.40 level above, although at this point that seems the least likely scenario. The markets will of course be very volatile, as the Friday jobs situation almost always causes a lot of noise.

Breaking below the uptrend line was important, and I think that most sellers are waiting to see if the jobs number will confirm that negativity overall and drive the US dollar higher over the course of the summer, which a lot of people are starting to suspect is about to happen. Although I like the British pound longer term, I think that we are starting to see the US dollar flex its muscles.