US Nonfarm Employment Change comes this Friday at 12:30 GMT.

If actual data comes inline with market forecast:

Expectations for this month reveal that the Non-Farm Employment Change figures will drop by 73K from July. Such a result, should it take place, will be the biggest drop in employment numbers that the U.S economy has experienced since April of this year. Previous surveys have shown that publications that reflect a significant contraction in the job sector had a radical impact on the USD, and concluded in a sudden downtrend. Considering that the survey has delivered negative figures for several consecutive months now, another sharp drop could signal a temporary halt in the Dollar’s bullishness, and the USD could be facing an unfortunate weekend, causing the EUR/USD pair to rise back toward levels around 1.4700

If actual data surprise with bullishness

If the actual figure is higher than forecasted, traders are likely to see the USD appreciate against other majors. Currently, investors are setting their positions on the USD based on the assumption that by the end of the week, the USD should face a sharp bearish movement. However, in case that the survey will deliver better figures than expected, such as 40K drop instead of the forecasted 73K drop, investors will be compelled to reevaluate their strategies, and go long on the USD. In this turn of events, the Dollar might receive an extra boost that will broaden its bullish voyage, and the EUR/USD could drop toward levels of 1.4350, breaking what would be a 9 month record.

Make sure you are prepared for Friday, otherwise do not trade, wait for the “craziness” to die out.

Truly yours,
Practical Trader

This section is currently closed due to changing the concept of delivering daily news.

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On my website, I’ll continue analysing the market, but I’ll do it on a weekly basis.

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Truly yours,

Practical Trader

GBPUSD pair has reversed as expected during previous weeks.

Now, while now bulls are trying to bring the pair higher again it looks that they are running out of steam and expectations are for the pair maximum swing high around 1.9770 area.

There with Fibonacci resistance point and trend line resistance GBPUSD should descend again, where we will be looking for the opposite side of the triangle to be broken.

If so, there will be yet another retest of 1.9350 area after which the targets will be set to 1.9100.

Forex trading by practical trader.

GBP/USD bias this week is bearish.

Bouncing off the support last week price faces first minor resistance at around 1.9600 level.
We will be looking closer at trend line (2), which holds pair to the downside. If the trust up at the beginning of the week is going to be large, then we may as well observe double resistance at 0.382 fibonacci level +trend line.
Aggressive sellers may try entering there.
Conservative traders will wait for their chance to Short at 0.618 Fib level if pair manages to get there; it will if trend line 2 fails.

On 4 hour GBP/USD charts this morning we may clearly see MACD divergence formed from last week, which in combination with hitting main support line propelled price upwards. Stochastic however, suggest a rise of selling pressure on 4 hours charts.

Overall, we need to wait and see how much further up GBP/USD can advance and choose the best position for entry.

Good luck trading!