GBP/USD forecast for the week of June 30, 2014, Technical Analysis

The GBP/USD pair broke down a little bit during the course of the week, but as you can see the 1.70 level has in fact offered enough support to form a hammer now, and that of course suggests that the market is going higher. We are very bullish of the British pound as the British economy seems to be coming out of recession, and that the Federal Reserve seems to be having struggles as far as tapering off of quantitative easing in the future. Nonetheless, we believe that the market does continue to go higher, aiming for the 1.75 level.