GBP/USD Forecast December 30, 2011, Technical Analysis

GBP/USD fell on Thursday as the Italian bond auction didn’t go as well as expected. This pushed riskier assets down, but the follow thorough just wasn’t there in this pair. Because of this, we saw the pair bounce as it approached the 1.54 level, and even attempted to head towards the all-important 1.53 support level. 1.53 is the bottom of the massive support zone that starts at 1.55, and the candle that has formed for the session is a hammer. This suggests to us that a quick bounce is probably coming, and as Friday is the last trading day of the year – we aren’t expecting much in the way of fireworks anyway. Because of this, we will let this pair rally and sell it at higher prices as the support zone is gradually being chipped away.