The British pound rallied during the session on Wednesday, as the 1.24 level continues to offer support. Because of this, it looks as if this is a “buy on the dips” type of market, but I also see a significant amount of resistance near the 1.26 handle. In other words, this is consolidation, but with a slightly upward bias. Keep in mind that there are a lot of headlines about the British pound now and of course the British economy, so this could be a messy trade. Ultimately, this is a market that I believe breaks out to the upside over the longer term.
Written by FX Empire