The British pound has gone back and forth during the trading session on Tuesday, as the 1.35 level continues offer plenty of resistance. Ultimately, this is an area that looks as if it is a major fight waiting to happen.
The British pound had rallied quite significantly during the last two weeks of December, but one has to wonder whether or not there was a certain amount of short covering going on? Nonetheless, we find ourselves at the beginning of a new year and as a result new attitudes prevail. The 1.35 level has been important multiple times in the past, and it certainly looks as if we are putting up a fight here. Whether or not the market can overcome this barrier is a completely different question but with the jobs number coming on Friday, it is possible that might be the catalyst.
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