Some good news out of UK, for a change. After recent avalanche of doom and gloom reports, employment numbers turned positive today. Unemployment count for January was revised down, but February figures were even more inspiring – number of unemployed fell at fastest rate in 12 years. This proved positive for Pound, just like for currencies of other countries, which showed improved labor market. Dollar seems to be the exception, it tends to benefit on bad news from US.

GBP reaction was nice, but without any real follow up. Basically everything happened within one hour, and that was it. News reaction, rather than genuine market progress. Combined with yesterday’s advance, Pound is probably pausing, before market decides on the next move. As of right now, I have a long trade in GBP-CHF and took one earlier in EUR-GBP, on the breakout. I didn’t trade it yesterday, but gave it a try today. Small target, because of proximity to next support.

It is not really visible on this chart, but there is resistance at around 0.8980 before, so 40 pips was my target. Currencies moved fast, and my sell order was slipped by 1 pip, bringing total gain to 39 pips. No more trades here for now. GBP-CHF trade remains live. Outside of that, time to look at higher magnitude chart, 4 hours and see if this current Pound revival has more legs.

This here chart shows a possible bottom formation developing in GBP-CAD. If this continues, I’d like buy it at 1.5625. No firm order yet, but this is general idea, seeking a move to 1.6000. Meanwhile Canadian Dollar is still strong, trying hard to reach parity with USD. That could prove to be a significant psychological support, impacting the CAD broadly. For now it is still strong, so I closed CAD-CHF trade.

While I plan on selling the Loonie, this trade is not moving the way I’d like, so it was closed for 45 pips loss. If the price drops again, sell at 1.0328 will be taken, with 150+ pips objective. Besides, I had a lot of trades going and had to clear the books. This trade was one of the weakest performers so it had to go. Hopefully, price turns down again and I’ll give it one more shot.

Mike K.