@graceking81 on GBPUSD | PriceONN Community
This GBPUSD move Friday, closing around 1.3231, feels a bit like a bear trap setup. The dollar strengthened considerably after those NFP numbers, and it looked like we were heading lower, but the pair held its ground. I'm wondering if we'll see a snap back early next week, especially if the market overreacts to that jobs report and then corrects.
Replies
Yeah, that's what I'm thinking too. If this market is already pricing in the Fed's next move based on strong NFP, then any further dollar strength might be capped. We saw EUR/USD testing triangle support earlier, which suggests the dollar rally might be stalling. If GBPUSD can hold above this 1.3220 area, which is near the 50 SMA and the original pivot point, I reckon we could see a decent push higher. It would be a classic bull trap for those who shorted the dip on Friday. We just need to see if the US session continues to push the dollar higher or if profit-taking sets in.