Weekly Forex Forecast

GBP/USD The British pound definitely made a statement last week, breaking above the top of an inverted hammer. By doing so, it does suggest that we are ready to continue going higher, which I would suspect means that we are heading towards the 1.35 handle. Pullbacks at this point in time should be thought of as potential buying opportunities, but you should also keep in mind that we are trading between Christmas and New Year’s, so liquidity is a major issue, and you have to be cautious with your position size. Nonetheless, the British pound certainly looks as if it has become very bullish in very short order.