During Tuesday’s trading session, the British Pound was testing the support level of the weekly S1 at 1.2711 to end the trading day at the 1.2703 mark. On Wednesday morning, the rate was located at the 1.2740 mark.
In regards to the near-term future, most likely, the British pound will trade sideways due to support of the weekly S1 at 1.2711 and the resistance of the monthly S1 at 1.2778. The 55-hour simple moving average will try to catch up the rate during the trading session to give an additional resistance to push the rate below of the weekly S1 to trade at 1.2650 level.
Note, the US Dollar could depreciate against the British Pound during today’s fundamental news which could force the rate to trade above the monthly S1 level.
