GBP/USD Daily Forecast - 31 December
Sterling once again tested 1.55 handle during the yesterday's session and found it to be supportive enough at the moment in order to rebound and finish the session around 1.5560 level. As for tomorrow we cannot expect any larger movements since it is New Year's Eve, and there will be no major data releases from the UK. Pair is likely to find support around 1.55 handle, area which proved to be supportive for some time now, so this would be our short-term buying point.
On the other hand, we believe that 1.56 handle should offer plenty of resistance in a steadier session so this is where we would consider selling the pair, short-term looking. Long-term looking, we would wait for a break below 1.55 handle in order to start selling the market. Despite this rally, general weakness in the pair is obvious and we believe that it will head towards 1.50 handle, thus buying is not an option.
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