GBP/USD Forecast January 19, 2017, Technical Analysis

The British pound fell on Wednesday, but found enough support near the 1.2250 level to form a slightly supportive looking candle. The 1.25 level above is massively resistive, so I think somewhere near that area the sellers could get involved, but if we see an exhaustive candle in that area, I feel it’s likely that we will try to reach back towards the lows again. Alternately, if we can break above the 1.25 level, the market should then reach towards the 1.27 level above. Either way, I think you can get a lot of volatility in the British pound.