GBP/USD Forecast January 11, 2017, Technical Analysis

The British pound initially fell on Tuesday, but found enough support to turn things around and form a hammer. This of course is a bullish sign but I think is a short-term strength at best. A simple bounce from selling pressure makes sense, as we did break through a significant amount of support yesterday. Because of this, I’m looking for rallies as selling opportunities as they will offer value in the US dollar going forward. I have no interest in buying the British pound against the greenback, and believe that most the market feels the same way.