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It’s NFP Friday, forex fellas!

Will we see a strong jobs report or another disappointing one?

More importantly, how might dollar pairs react?

But first, check out the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • BOE MPC member Broadbent’s speech at 11:15 am GMT
  • Canadian employment change report at 12:30 pm GMT
  • U.S. non-farm payrolls, unemployment rate, and average hourly earnings at 12:30 pm GMT
  • Canadian Ivey PMI at 2:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: GBP/USD

GBP/USD 1-hour Forex Chart
GBP/USD 1-hour Forex Chart

I’ve still got Cable on my radar for today, as the pair looks prime for a breakout from its tight consolidation pattern on the short-term chart.

The pair has formed lower highs and found support around 1.3900, creating a descending triangle formation.

Is GBP/USD a buy or a sell?

Stochastic is hinting that bears are about to take over and go for a downside break, possibly sending Cable lower by the same height as the chart pattern.

The 100 SMA is above the 200 SMA for now, but a bearish crossover is looming. Once that happens, more sellers could hop in and sustain a drop.

Of course it could all boil down to the outcome of the U.S. NFP report, as analysts are expecting to see a slightly faster pickup in hiring for July.

Leading indicators are giving mixed signals, with the ADP report printing a downside surprise and the ISM surveys reflecting stronger employment for the month.

In any case, I’m gonna keep my eyes peeled for a move in either direction, especially since the post-NFP dollar reaction is typically sustained throughout the rest of the U.S. session.