On Friday the pound followed the euro’s growth. US Unemployment Rate dropped to 7.6%, data on Nonfarm Payrolls was weak; it was only 88K. We (as well as many columnists from Wall Street) consider the data will once again be revised upwardly, even though the size of economically active population steady decreases every month (the labor force participation rate decreased by 0.2% to 63.3%) and the factual unemployment rate is not 7.6%.
Today there is no data on the UK and the US. However, data on Industrial Production in Germany is published. It is estimated to grow. We consider the pound continues following the euro’s growth.
Technically, in order to continue growing the price has to test the other Fibonacci extension (1.5387), its testing level virtually coincides with resistance trendline on the daily chart 1.5390. We expect the price will rise to this target.