GBP/USD Forecast January 18, 2017, Technical Analysis

The British pound skyrocketed after Teresa may suggested that the UK would be working very closely with the EU after the exit. I’m not sure why traders thought any different, but it’s obvious that the buyers have returned. I think there is a significant amount of resistance at the 1.25 handle above, so unless you are already long of this pair, buying at this level will more than likely offer nothing but chasing the trade. And exhaustive candle is what I’m looking for to start shorting. If we get a daily candle that closes above the 1.25 handle, then I have to rethink the downside as well.