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GBP/USD Price Analysis: Traders are positioned flat ahead of NFP, breakout eyed

  • GBP/USD bulls are riding dynamic trendline support.
  • The market is now trading at the middle of the range ahead of NFP on Friday. 

GBP/USD has shown signs of a classic pre-Nonfarm Payroills clear out as the pair sweeps liquidity on both sides of the bulk of this week's range. GBP/USD rallied in Asia from the lows and reached as high as 1.2781 before collapsing to the day's lows in late US morning trade of 1.2673, taking out Tuesday's inside day's lows.

GBP/USD H4 chart

GBP/USD is pretty much at the equilibrium of the range for this week ahead of Nonfarm Payrolls while riding the trendline support and leaning against the prior bearish trendline that is now acting as counter-trendline support. 

The low for the week is at 1.2658 and is a keen area of interest as this guards space to a test below 1.2600 as a target area on the downside.  On the upside, a break of 1.2781 opens the risk of a run to test the 1.2850s upside target area. 

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