The GBP/USD pair fell during the day on Monday, as they have tested the uptrend line. A break down below there is a very negative sign, and the British pound should continue to go much lower. A break above the 1.25 level would be a bullish sign, but I think the market will then reach towards the 1.2750 level above, which is the major ceiling at the moment. I suspect that the US dollar will continue to pick up strength over the longer term, but I need to see a daily close below that uptrend line to feel comfortable shorting.
Written by FX Empire