GBP/USD Forecast December 28, 2016, Technical Analysis

The USD/GBP pair fell slightly on Tuesday as we came back from Christmas celebrations. The 1.2250 level offered a little bit of support, but I believe that this is at best “soft support”, meaning that any balance should be sold into on signs of exhaustion as I think the market is heading to the 1.21 level, and then possibly the 1.20 level underneath there. Given enough time, I think we could break down below there but it will be a significant battle to do so. I have no plans of buying the British pound against the US dollar currently.