Investors are trying to figure out whether the Federal Reserve plans to pull back from the market, which means they’re trying to figure out whether Jerome Powell will sound more hawkish or more hawkish over the coming weeks. GBP/USD did very little during Thursday’s trade but showed some resistance. The 200-day EMA is below the candlesticks on both Tuesday and Wednesday and appears to provide near-term support. Plus, we were in a high-trend channel, so you’d think sooner or later the buyers would come back just for that. Advertisement Take advantage of recent volatility with the world’s most popular pair. Exchange EUR/USD now! However, it is worth noting that the market has been very noisy and volatile, so recently there has not been a massive bullish trend, just more or less grinding. Investors are trying to figure out if the Fed will pull back from the market, which means they’re trying to figure out if Jerome Powell will sound more hawkish or more hawkish over the coming weeks. Waiting for the CPI Numbers Remember that Friday’s CPI readings will affect where we go next, as it may give us some „heads up” on what the Fed may or may not do when making interest rate decisions. and of course monetary policy. Inflation is most people’s biggest concern right now, although most people believe that Artie has hit „peak inflation” in the US. If so, it is possible that we will continue to see the US dollar decline, all things being equal. At the same time, we also have to worry about the fact that the world economy is slowing down, and usually in economic recession conditions, people depended on the US dollar. In this regard, we have to ask whether the British pound can continue to rise as it has been. After all, Britain is definitely heading for recession, and the Bank of England has already suggested that a two-year recession is on the way. In this scenario, it will be difficult to go too high against the currency, even if the central bank tightens the same recession. However, I would be cautious, but if we break below the 200 day EMA, it may be time to start selling again. On the other hand, the 1.25 level makes a juicy target.