Cable Rally After Jobs Data! Euro Follows

The Jobs data have triggered the USD to decline as the 74,000 figure was total surprise for the market. And this led the GBPUSD to recover / pulled back higher from its daily session low @1.6378; currently back to the 1.6488. This would still have an after effect towards the coming week, which likewise supported Cable from the stable UK economy that supported the currency pair.

A probable re-test above the 1.6580-1.6610 would be the next levels that we can see with enough volumes and momentum to push prices higher would be the best logical move. Wider price swings are expected with a drawback lower from these highs at the end of the North American trading session. Meanwhile, support price level is still intact with 1.6350  fairly just above Cable's trend-line support as indicated on the chart figure.

The overall trend is well defined contrary to the corrective phase decline from the past week has proven to be just short lived. There would be some probable corrective move in the making for Cable within a two week period which would be part and partial of its cyclical pattern for the month of January. This set-up would present itself when the motion of traders have exhausted their bullish market trend sentiments in the medium term.

Even with most traders on the EURUSD still caught short of the market from last weeks decline have now suffered a serious setback from the USD Index moving back down @80.60 to this writing. Again, we do expect wide market swings as we have likewise described with the Gold market. As the USDX has enough room to move lower within striking distance of the 80.05/10 support levels