GBP/USD Forecast 12/01: Continues To Underwhelm (Chart)

(MENAFN- Daily Forex)

• The British pound found itself struggling for strength during the trading session on Friday, and even though the United States released a weaker than anticipated jobs report on Friday, it ended up being a situation where the dollar strengthened anyways.
• That's kind of interesting, and that tells me that the stubbornness of the US dollar may persist.
• Technically speaking, we have the 50-day EMA sitting at the 1.34 level, which is a large, round, psychologically significant figure and an area that I think will attract a lot of attention.

Key Technical Levels and Market Sentiment

If we were to break down below there, then we would have the possibility of a drop down to the 1.32 level. On the upside, we have the 1.35 area being more or less a magnet for price, and then the 1.3550 level being a major barrier.

EURUSD Chart by TradingView

In general, I think we are still very much in consolidation, but if we break down below the lows of the Friday session, then you start to see the British pound fall. I would also watch the US dollar against multiple other currencies as well, due to the fact that they do tend to move in the same direction with regard to the greenback.

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What I find interesting about this, as I said previously, is that the US dollar strengthened despite the fact that the job numbers ended up being only 50,000 jobs added instead of the anticipated 65,000. This tells me that the 1.35 area might end up being a bit of a swing high. It certainly has the look of a market that could roll over here, so I'll be watching this one very closely.

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