GBP/USD Forecast July 12, 2016, Technical Analysis

The British pound fell during the day but did end up bouncing on Monday in order to form a bit of a hammer. The hammer sits just below the 1.30 level, an area of interest obviously as it is a large, round, psychologically significant number. Any bounce at this point in time should be a nice selling opportunity though, so I am simply sitting on the sidelines and waiting for exhaustive candle in order to start selling this very negative pair. I believe there is a massive amount of resistance between the 1.32 level and the 1.35 level. A break down below the bottom of the hammer would also be a selling opportunity.