GBP/USD Forecast December 24, 2012, Technical Analysis

The GBP/USD pair fell precipitously during the Friday session as the “risk off” trade came back into play. With the failing of the so-called “fiscal cliff” talks, this market absolutely cratered. However, you can see that roughly the 1.6150 level offers support, and as a result we could see a bounce from this level. It should be noted however that the weekly candle is a shooting star, so we could see a pullback coming at us. We will simply wait to see how this market reacts to the 1.6150 area, and place our trade accordingly. We still believe in the long-term viability of the bullish market, and as such actually prefer to buy even though we’ve seen a significant pullback.