GBP/USD daily chart, December 01, 2016

GBP/USD Forecast December 1, 2016, Technical Analysis

The British pound initially fell at the open on Wednesday, but turned around at the 1.24 region to bounce and form a hammer. The hammer sits right just below the 1.25 handle, and because of this I believe that we may break out to the upside but quite frankly I don’t want to be bothered. I see quite a bit of noise just above, and that the “ceiling” at the 1.2850 level is very much intact. Given enough time, I think that we will see the market make an impulsive move to the downside, but right now I think this is essentially “dead money.”