GBP/USD - GBP/USD Dropped And Met Our Target - 02/01/2017 (GMT)

Sterling also performed well on Tuesday as it recovered all of its earlier losses against the greenback. The GBP/USD pair dropped to 1.2415 support level and met our suggested target of the first scenario and then climbed near the 1.2600 significant psychological level which was the second scenario in the previous analysis (see technical analysis: http://bit.ly/2kp9DdK).

The Brexit process is likely to dominate the moves of the pound and continue to keep the pressure on GBP/USD over the short and medium term. So, we expect the cable to move sideways for the next sessions between the 1.2415 and 1.2600 levels. Technical indicators are moving near its mid-levels with some weak momentum. RSI is sloping to the downside while MACD surged above its trigger line.