GBP/USD Forecast January 6, 2017, Technical Analysis

The British pound rallied again against the US dollar, after initially falling. This is a very bullish looking candle that we have an uptrend line from the previous trend just above, and it coincides nicely with the 1.25 handle. Because of this, as the first signs of exhaustion I am more than willing to start selling the British pound and aiming for lower levels again. There are far too many reasons the think that the British pound may be punished due to uncertainty, while the US of course has a likelihood of several interest-rate hikes ahead.

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