Hard to be a hero on the dip after the report though
The GBPUSD has moved sharply lower on the back of the better US employment report and has entered a key support area for the GBPUSD. I have been speaking about the area this week as a level that will be tough to crack. With yesterdays BOE stimulus and now the US employment picture the trend should be lower for this pair. The question is will the dip buying hero's enter and support the pair in this area?
They may as risk is defined but I don't think they will hold longs for long if they were to buy the dip (in other words it would be a quick trade - perhaps up to 1.3074), and if the lower extreme is broken, they will likely get out (below 1.1046).
When risk is defined and limited anything is possible, but this is a pretty big one-two punch for the pair. Shorts remain in control. Be careful. The trend is for lower with the 1.3000 level the next target.
PS. the pair is testing the low level right now as I type...
