SMART MONEY has been active in the pound for the latter part of this year moving size through the pound pairs and crosses and we expect this trend to continue. GBP NZD has trended to the downside in what would be classified as a parabolic move. GBP USD has stayed in a large trading range with constant intra week volatility. This is no time to be using a tiny stop loss.
We expect further downside movement in GBPUSD going into this week. After gathering orders above 1.4800 last week SMART MONEY moved to the downside and stopped out all of the pound longs. Now its time to continue lower and start getting traders short. This could be a setup for a move up on friday at Non Farm Payroll. Further analysis towards the end of the week will reveal SMART MONEY'S intentions. We will look for a potential short entry at market open on Sunday and see if this materializes.
With Non Farm Payroll on 1/8/16 to ring in the New Year we expect increased volatility in all pairs this week. Expect volatility at the opening Sunday night into the beginning of the week as SMART MONEY gathers orders and starts to set up traps into Friday morning before the 8:30 am EST Non Farm Payroll numbers.