AM trading in Europe has seen the British Pound and Euro hold the support areas of the last week as we move into NFP day. The Euro is currently holding above 1.4280 and is looking likely to make a move up today towards US open. The Pound making stronger moves from a base of 1.5920 area and currently trying to push above the round number of 1.6.

There could be a strong upwards move on the way for GBPUSD as many wave analysts are calling for a wave 3 rise from the lows of 30th December, having just formed a 1,2 pattern since that time. If the Pound breaks above 1.6 it will surely meet some resistance up at the 1.6200 area which was the last support it broke down from in the early weeks of December 2009.

All eyes now on the Payroll report, as we look for evidence that the recent rise in the US Dollar index can be sustained by recovering job markets.

Whilst the Euro looks weak against the Dollar, it looks a lot stronger against the Yen with the current move up now at the resistance highs of December 2009. A break above the high could signal a move onwards to 136.00 or higher over the next month, depending on the strength of the Yen which is currently weka across the board.

Happy trading.

Forex Rate.