GBP/USD Forecast December 7, 2012, Technical Analysis

The GBP/USD pair initially rose during the session on Thursday, but found the 1.61 level far too resistive to overcome, and as a result we formed a fairly negative looking shooting star shaped candle. However, we had said previously that the 1.60 level should offer support and so far it has. We haven’t even pierced that area, so we think perhaps a little bit more weakness should see support coming in just below. In fact, if we get some type of knee-jerk reaction to the nonfarm payroll number later today, that could be the catalyst for the market to pullback closer to the 1.60 handle in order for us to start buying again. We have no plans on selling.