GBP/USD Forecast January 31, 2017, Technical Analysis

The British pound fell on Monday, testing the 1.25 support level. I believe this makes quite a bit of sense, because we’ve had such an explosive moved higher. It’s possible that the British pound is trying to change the overall trend, and this is always a very volatile move. I’m waiting to see whether we get a supportive daily candle that I can take advantage of, and have no interest whatsoever in selling this market into we get well below the 1.24 handle below. I suspect that we are about to see quite a bit of consolidation in this area.