Cable loses early session momentum as dollar keeps slightly firmer
GBP/USD sees a fall from 1.3113 to a session low of 1.3040
It has been a quick turnaround for cable in the past hour as we see price action move from session highs just above 1.3100 to a session lows around 1.3040 currently.
The dollar is keeping a little firmer across the board still but the push lower breaks a minor near-term trendline support for cable and puts the focus back towards the 100-hour MA (red line) @ 1.3024.
That will be the area to watch in case buyers make their stand. Break below that and the near-term bias turns more neutral but keep above that and the bias stays more bullish.
The 9 March high @ 1.3200 remains elusive for cable as we see some consolidation in the upside momentum since the closing stages of last month.
Brexit talks will slowly come into focus as we move towards the September “hot phase” and that will be a risk factor to eye for the pound in the coming weeks.
For now, the nudge lower isn’t quite taking out any key technical levels as seen above but just be mindful if price starts to nudge back under 1.3000. That could lead to a sharper retracement after having seen the recent run of gains snapped at the end of last week.
Elsewhere, the dollar is also trading at session highs against the euro with EUR/USD down to 1.1736 while AUD/USD is staying pressured near the 0.7100 handle.
Source: Technical analysis