The British Pound has been back and forth against the US dollar during early trading on Wednesday, as we are bouncing it around between the 50-day EMA and the 200-day EMA indicators. With that being said, the market is likely to continue to see a lot of choppiness and it’s probably worth noting that you have 2 central banks that are basically in the same boat here. Both probably have to worry about inflation a little longer than most people had anticipated, and this, of course, causes a little bit of trouble.
The 1.35 level above is significant resistance, as well as the 50-day EMA, so I think you do have a lot of overhead pressure. To the downside, we have the 200-day EMA offering support, but if we break down below there and we have multiple times, the 1.3250 level becomes interesting support.
