Cable tests 100-day moving average as pound stays pressured to start the sessionpetar skakalov
GBP/USD falls to a session low of 1.2863 on the day
hat is the lowest the pair has traded in nearly 3 weeks, as we see sellers try to push the agenda and contest the 100-day MA (red line) @ 1.2878. The level previously held at the end of last week and also during October alongside the 200-day MA (blue line).
The last time we saw the pair firmly trade below the level was all the way back in July.
That will be a key focus level as we look towards the close today as such.
The pound is being dragged lower today after UK PM Johnson announced a second lockdown, lasting through to 2 December, which is weighing on the economic prospects in the UK – not to mention expediting the need for more easing measures by the BOE.
Brexit murmurs are that talks are making progress and getting “closer” to an agreement. But we’ve all been led down that road one too many a time, and the focus on that is being overshadowed by the lockdown news for now.
Elsewhere, EUR/GBP is also back up to test its 100-hour moving average @ 0.9035. The pair has been running into resistance from its key hourly moving averages since last week but a firm break above 0.9050 may see the pair set sights on 0.9100 next.
Source: Technical analysis