GBP/USD Forecast January 9, 2017, Technical Analysis

The GBP/USD pair fell hard on Friday, as the US jobs number was in line. By breaking lower, it looks as if we’re going to test the previous support level at the 1.22 handle. If we can get below there, the market should then reach towards the 1.21 level, and the 1.20 level after that. I still believe that short-term rallies offer selling opportunities, on signs of exhaustion. I believe that longer-term the US dollar retains the strength that it has enjoyed for quite some time, and that the British pound will continue to drop.