GBP/USD trades to session lows as we get things underway in Europe
The dollar continues to hold firmer across the board and that is weighing on cable as the pair falls to a session low of 1.3285, just shy of the overnight low @ 1.3284.
Buyers tried to make a play back to the upside following the drop yesterday, but gains failed to hold above the 100-hour MA (red line) and that is seeing price action keep more neutral for now – trading in between the key hourly moving averages.
A break below yesterday’s low will open up a potential test of the 200-hour MA (blue line) @ 1.3253 and that will be a key near-term technical level to watch.
If sellers can push below that, they will turn the near-term bias to being more bearish and call into question the 1.3200 handle.
However, the next few sessions before the weekend may be a bit tricky to navigate.
The dollar may be keeping firmer now, amid the ongoing retreat in EUR/USD as well, but tomorrow’s US jobs report is a key risk event to be mindful of.
That will potentially help set the tone not only for the dollar, but also for equities and we could return to more risk correlations in FX after deviating over the past few days.
For now though, cable is caught in a battle on either side of the 1.3300 level with the key hourly moving averages capping gains and also limiting downside.
The 100-hour MA @ 1.3355 and the 200-hour MA @ 1.3253 are the key near-term levels to be wary of as such, with price action caught in between for the time being.