The GBP/USD pair initially rally during the day on Wednesday, but ran into a little bit of trouble at the psychologically important 1.25 handle. That’s not a huge surprise, it is an area where you would expect a lot of noise. I still believe that the market is consolidating overall, and that should give us an opportunity to buy on the dips, unless of course we break down below the 1.2350 level. That area has been rather supportive and a breakdown below there would send this market looking for the 1.21 handle. There seems to be a pickup in inflation when it comes to the British pound, so that should continue to benefit the currency.
Written by FX Empire