Beyond that, the British Pound could be looking at a move to the 1.15 level, which is an area where we have a big, round, psychologically important number, and of course there was the resistance seen earlier. We have done very little for GBP/USD over the past two weeks, staying between the 50-day and 200-day EMAs. It looks like we finally made up our minds on Thursday, as the ADP hiring numbers came in much hotter than expected. This leads people to believe that the Fed will have to remain very tight for the foreseeable future, which the Fed has, frankly, been shouting for months. Advertisement Test your technical skills now! OPEN FREE DEMO ACCOUNT Market participants are now looking forward to Friday’s job number which they think is quite hot. If so, the Fed will likely have tight monetary policy for the rest of the year, based on what they’ve said. I have no reason to doubt that the central bank will continue to fight inflation and worry much less about the stock and currency markets. Beyond that, the British pound could be looking at a move to the 1.15 level, which is an area where we have a big, round, psychologically important number, and of course there was the resistance seen earlier. I am waiting for jobs On the other hand, if we reverse and close above the 200 day EMA on the daily candle, we could go to see the 1.22 level, opening the possibility of a move to the 1.25 level. I don’t think it will be easy, or maybe even unlikely, but it is a scenario we have to consider. That said, it looks like the British pound is starting to incite some selling pressure, so I’ll definitely keep that in mind when pushing the buttons. The , jobs number obviously has a big impact, and I think the way we react to the ADP number has become even more evident since this session. I don’t think it’s necessarily going to be a big crash, I just think the British pound has come a long way, so it’s very likely we could see a bit of a deeper correction now. It seems we’ve been waiting for some reason to move, and maybe we just found it.