The mixed numbers from the services PMI wasn’t enough to keep the pound afloat above 1.61 and we’ve also dropped below the 100 wma at 1.6089. A close below today could spell further trouble for the pound. Trading off the level has been a profitable venture just looking back to late 2012.
GBP/USD Weekly chart 03 10 2014
In fact, trading all three as the ran in close proximity would have worked well and we’re facing the same possibility here too. I’m toying with sticking a little long in here ahead of the NFP but I’m not liking the strength of the current move as it does seem pound focused at the moment. I’m still looking a t a long from 1.60 but will be very wary of a break below that level.