GBP/USD Is Falling despite the Holiday Cheer

Although today is 23^rd December and the volatility of many currency pairs has decreased significantly, GBP/USD appears to be as active as ever. Yesterday the pair broke below the previous low at 1.2300 and continued moving to the downside. Currently the pair is testing the support at 1.2260 and so far at least there is no indication that it will bounce off that level. If GBP/USD remains as active between the holidays it could continue falling towards the next obvious target at 1.2200. A breakout below that level could lead to a further move to the downside towards the previous low at 1.2080, but it is highly unlikely to break below that level too before the end of the year.