The British currency is in its best shape in nearly a year as the UK economy looks brighter.

The GBP/USD currency pair traded at its highest level in 10 months on Tuesday, but marked a pronounced downgrade in the past couple of days. The UK economy showed signs of recovery and prospects for a brighter performance, fueling the native currency to $1.2530.
Traders pierced a long-term resistance laying at $1.2450 (a double top was taken out, for the technical-minded among us).

Now, the pound has been sliding for a second-straight day against the US dollar as money managers eye the next big event on the calendar – the nonfarm payrolls.
Tomorrow the UK’s inflation worries and rate hike expectations will step aside for investors to digest the US jobs number, which will highlight the vigor of the US economy.

With that in mind, volatility is to be expected in all corners of the forex market, especially in the GBP/USD and the EUR/USD.