Forex Trading: GBP/USD Remains Volatile But Chooses The Downside

The GBPUSD chose the downside as it moved below the key 100 and 200 hour moving averages and retraced the overnight gains completely as stocks hit new lows.  The pair did find support against yesterdays lows at the 1.4711 - taking it out briefly as it moved to lows at 1.4702.  However, the sharp bounce back to over 1.4800 has taken some of the steam out of the sellers for now.

The market now moves into the afternoon period where positon squaring before the weekend will take place.  This will most likely cause random moves, most likely tied to the ups and downs in the stock market.  If we see an end of day rally in equities, the likely move is up.  A sharp decline, and the GBPUSD will be under pressure again.   The trade is a difficult one going into the uncertainty of the weekend.

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