GBP/USD Forecast January 22, 2016, Technical Analysis

The GBP/USD pair initially fell during the day on Thursday, but found enough support near the 1.4050 level to turn things back around and form a significant looking hammer. However, there is quite a bit of bearish pressure above as we have continued to fall over the course of the last several months. Because of this, we will look for rallies to offer selling opportunities above, as exhaustive candles will be signals to start picking up the US dollar based upon value. We still believe that this pair is reaching towards the 1.40 level given enough time.