GBPUSD has fallen by more than 400 points post US rate hike and price has reached an anticipated dynamic zone. Dynamic zones are areas of keen interest to all traders, large and small, where price can be expected to make the biggest moves (swings). Dynamic zones present the most rewarding opportunities because they are the least occurring price action event on any given time frame, requiring discipline and experience to capitalise.
Should there be strong demand at this level, price can be expected to rise and retest the latest supply level of 1.2750. With the fed hiking rates with a strong economic outlook on the dollar for 2017, it is still hard to see how GBP can accumulate great demand against the dollar. There will be an opportunity to short if GBPUSD continues to fall, thereby breaking through the support with the possibility of shorting on a highly likely retest.