Friday, August 6, 2010

GBP-USD Calm Ahead of Non-Farm Payroll Data

Ahead of non-farm payroll data GBP-USD movement is very calm. The market is rallying down towards correction after strong overbought position last week and this week.

The big surprise is yet to be unleashed because anything can happen after the Non-Farm Payroll data. Despite of the strong initiation towards correction, upside continuation is not impossible either as there is so big room for it.

Based on Fibonacci analysis there is 50:50 chances for correction and also continuation and that will depends on what the sentiment of the market today. If correction is to happen then 100% Fibonacci retracement on daily time frame should be hit. On the opposite if the continuation goes through then it will be going up all the way to 161.8% at position level 1.6420.

We will see where the major crowds will bring us today.!

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