GBP/USD Forecast February 6, 2017, Technical Analysis

The GBP/USD pair fell during the day on Friday, but turned around to form a nice-looking hammer at the 1.25 handle. This is a very bullish sign and if we can break above the top of a hammer I feel that the market will then reach towards the 1.27 level above. If we breakdown below the bottom of the hammer, we will then go looking for support at the 1.24 level. Ultimately, I believe that the British pound is trying to change its overall trend, so this is a very positive sign as far as I can see, and I believe that we go much higher over the longer term.