On Thursday the pair did break below support at 1.4820 but was rejected by 1.4800.  This resulted in a push above the 1.4860-1.4870 level which triggered the test of the recent highs at 1.4900.  It failed to push above 1.4920 which is the next breakout level.

The pair currently sits at 1.4867.  Minor resistance has developed at 1.4880.  A break of that may be good for a scalp, but until the pair moves back above 1.4900 the movements are more likely to whipsaw.  A push above 1.4900 indicates a test  of 1.4920.  If that level that can be penetrated, 1.4950 and 1.4980 are the targets/resistance beyond.

A drop below 1.4839 indicates a move to 1.4820-1.4810.  If the pair continues to sell, support comes in at 1.4770 and beyond that 1.4740-1.4730.

Keep in mind the Non-Farm Numbers come out of the US today at 13:30.  This is one of the biggest market moving events, thus the markets get very erratic around the announcement.

If you want a strategy for trading the NFP report you can read my article on it here:

http://www.investopedia.com/articles/forex/09/non-farm-payroll-report.asp

Cory Mitchell, CMT
Chief Market Strategist
-Please read the Legal Disclaimer page.

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Since we are going to have an active news day I will not be posting the day trading signal.  GBP Services PMI comes out at 8:30 GMT, followed by employment data (non-farm payroll) at 12:30 GMT out of the US.

I have recently published an article on trading the Non-Farm Payroll Report.  That article can be accessed here:

http://www.investopedia.com/contributors/default.aspx?id=335

Use caution when trading news events, and never trade without a reasonable stop in place.  Do not try to  predict the movement, instead allow for the volatility to subside and wait for an opportunity to enter once an actual direction in the market has been established.  This article outlines one way to do it.

~Cory Mitchell
Market Strategist
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