GBP/USD threatens a break below the 100-hour moving average and the 1.2500 level as the dollar keeps firmer on the day
The dollar momentum today is driving a key near-term move in cable as we see price fall back under 1.2600 and towards a test of the 100-hour MA (red line) and the 1.2500 level.
A break below that will see the near-term bias turn more neutral as sellers exert further downside pressure in light of the stronger dollar today.
Further support beyond that is seen closer to the 38.2 retracement level @ 1.2464 and then there’s minor support from the 12 April low @ 1.2442. Beyond that, sellers will be looking towards a test of the 200-hour MA (blue line) @ 1.2413 currently.
It is all about the dollar momentum so far as we see the market stay more risk averse. European equities are down by around 2% across the board while US futures are down by 1.8% as oil prices are threatening a firm break below $ 20 at the moment.