GBP/USD Forecast January 3, 2017, Technical Analysis

The GBP/USD pair rallied on Friday, showing signs of position squaring for the end of the year. There is still a significant uptrend line that had previously been so supportive just above, and it should now cause quite a bit of resistance. An exhaustive candle between here and there would be a nice selling opportunity, and of course the 1.25 level above looks resistive also. In other words, on an exhaustive candle I am willing to get involved to the short side in this market as we will reach towards the 1.21 handle below.