GBP/USD Forecast for the week of December 10, 2012, Technical Analysis

The GBP/USD pair rose during the previous week, but fell in the end in order to form a shooting star. This shooting star sits just above the 1.60 level, and as a result looks like we are trying to break back down below that support area. However, the previous week was a hammer, so this could simply signal that we’re going to go sideways for the time being. This would make sense, as we are entering the month of December’s lowest liquidity phase as the holidays draw near. With this being the case, we are very flat of this pair, and are willing to buy any signs of support.