The U.S. economy is very strong and posting some record high economic numbers.
During the Asian session the GBPUSD moved lower and then pulled back in the early European/UK trading. Price moved up to test the 1.4200 figure but failed above. The pair moved lower to retest its Asian high, bounced and made a lower high going into the U.S. session overlap… in advance of the economic news releases. The DXY continued to strengthen and a short was taken risking 15 pips for a potential 40 pips to our daily target at 1.4116.
Price continued lower through its Asian session low and closed just beneath our target which we protected. Price attempted to push lower and as it came back to yesterday’s low, we closed the position.
Price direction versus the USD was highly correlated in all the major pairs. A JPY long was also a nice trade.
Be cautious around trading before the NFP release tomorrow. Expectations will be high.
Good luck with your trading!
