GBP/USD Forecast October 6, 2016, Technical Analysis

The GBP/USD pair went back and forth during the course of the session on Wednesday, but ultimately formed a hammer. With this, I feel that the market is probably going to break out to the upside and reach towards the 1.2850 level above. The level should continue to bring sellers into the market, so this is going to be a short-term buying opportunity at best. On the other hand, if we break down below the bottom of the hammer, that could be a negative sign, perhaps reaching down towards the 1.25 level below.

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