The British pound also had a very bullish session on Wednesday. At first, the market went upside down; however, it turned around and fell quite strongly. In this way, the market shows how dangerous the situation is for the sterling bulls. The biggest problem is probably not the British pound but rather that the US dollar is strong. After all, there are plenty of risks now, Hence the assumption that many people aspire to the bond market or US dollar security.
The 50-day EMA has been falling for quite some time; Therefore, it will likely approach the 1.32 level. Level 1.32 is an area that was previously significant. So all of these are interrelated for potential ceilings in the market.
From below, the market has reached the level of 1.30 at one point; if it falls below this candle, most likely, the market will move to the level of 1.28; It must be said, however, that there is a lot of noise between the 1.30 level and the 1.28 level. With all the previous noise on this side, it probably needs support; If the British pound has any chance of recovery in the long run. On the other hand, if it falls apart from this point, it is expected that it will be very noisy and lower.
British Pound and EUR/USD
At the same time, the euro started a new decline from the 1.0925 resistance zone against the US dollar. The EUR/USD pair fell below the 1.0880 level to move into the fall zone. The price traded below the 1.0800 level and below the 50-hour moving average. It changed up to 1.0757; He is currently collecting losses. Immediate support is close to the 1.0780 level.
The following critical support is close to 1.0765 on FXOpen; The pair could fall below the level of 1.0720 shortly. Any loss could have led the team to the 1.0680 level. In an upward direction, the couple could fight near 1.0840. The next significant resistance is near the 1.0850 level. A break above the resistance levels of 1.0840 and 1.0850 could start a decent rise to 1.0900 shortly.