GBP/USD Price Forecast: Pound Testing Major Support Ahead of NFP

From Daily Forex, this is Christopher Lewis taking a look at the British pound. The British pound has fallen pretty significantly during the trading session here on >> [snorts] >> Thursday, but we continue to see this as a market that is trying to find some type of floor. And recently, over the last say 6 months or so, we've seen this area between 1.32 and 1.3150 offer support. This is very interesting to me because we also have uh the jobs report coming out on Friday in the United States. It's worth noting that the stochastic oscillator is in the oversold condition. We've not had the clean crossover I like to see, but it is at a very low level. It's an area where you would expect to see a bounce. So, in the environment that the jobs number comes out weaker than anticipated, I might be a buyer of this. I certainly will be paying attention to how this finishes the day on Friday because the Friday session will be yet another piece of information that will give us an idea of how inflation may behave. For example, uh inflation right now has recently seen the PCE numbers miss, and the GDP numbers come in hotter than anticipated. So, with all of that being said, this is a market that I think if we get some type of confirmation one way or the other, it may finally clear some of the dust. If we get a poor jobs report, that might have traders hoping that the Federal Reserve is going to cut rates. The Bank of England is a little bit more dovish than the Fed. We do know that there were three members that had voted to cut last time, so we'll see how that plays out. But, in the short term, we're at a major area confluence. So, I'll be watching to see that if we bounce here, maybe a run to 1.33, maybe a move to 1.34. So, a breakdown from here opens up a move down to the 1.30 level.