Levels to watch for the pound
The 10th of May will provide a rate announcement for the GBP. However, there is virtually no chance of a rate hike, see here for details of how we got to where we are.
So let's look at the daily chart for the GBP/USD. Firstly, GBP/USD is sat on the 200 SMA level which is going to be a defining level for the GBP, as it is on many charts. Check out Justin's excellent post on this earlier.
Secondly, we are sat at a decent supply level. If we break the 200 SMA and that supply level , even more losses are ahead for the pound. I have been surprised at the rate of the fall in the GBP/USD, most probably because I wanted to sell a rally on the pullback. Alas, I wait on!
A miss today for the NFP hourly wages could supply a pullback I need. However, with May the 10th approaching ever closer any opportunities for a swing trade are going to be limited.
Other pairs are quiet too waiting for the NFP. EUR/USD nearly stationary, USD/JPY in a tiny range and the GBP/USD is pretty similar despite UK local election results favouring May's position in a Tory government.
