The British pound went back and forth during the day on Wednesday, testing the 1.25 level for resistance. We found that there again, but it just tells me that if we can break above there, the market should then reach towards the 1.2700 level above there, and the perhaps breakout longer term. Short-term pullbacks should continue to find buying opportunities near the 1.24 level, as it has been rather reliable. The 1.2250 level underneath continues to be the “floor”, at least for the meantime. Expect volatility, but I still have an upward bias.
Written by FX Empire