GBP/USD Forecast January 20, 2017, Technical Analysis

The GBP/USD para rallied a bit during the session on Thursday, as we continue to grind sideways overall. At this point, it looks as if the markets are trying to figure out where to go next, but I do see a significant amount of resistance at the 1.25 handle. If we can break above there, the market should continue to go higher, perhaps reaching towards the 1.27 handle. And exhaustive candle near the 1.25 level would be a nice selling opportunity, so I believe that the next couple of days will be important. In the meantime, I will be on the sidelines waiting.