It does look like we are seeing a little bit of pushback as we have broken above 1.2750 only to drop back down towards it again. So, it'll be interesting to see how this plays out. I do think we are at a major inflection point right now. So, I am watching this pair with great interest.

Greenback Strength Must Be Watched Closely

The US dollar itself has been very strong for some time and perhaps we're seeing a little bit of profit taking ahead of the jobs report, but what will matter to me is where we close on Friday. I think that will tell the tale for a lot of things. And in that environment, we could have a little bit of a binary trade, not a binary options trade, a binary trade, meaning we are either buyers or sellers based upon a specific event.

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If we break significantly above the 1.2750 level after non-farm payroll and hang on to it, perhaps you could just say if we close above there on Friday, then it might end up being a fairly significant buying opportunity. However, if we see this GBP/USD pair fall apart, then it's very likely that we could go looking to the 1.25 level. I think Friday is pretty big for this one. In fact, this might be a situation where this controls what happens over the next several months, but we will have to wait and see if that ends up being the case.

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