Cable creeps back a little higher above 1.3100 as buyers wrestle back some near-term control

Technical Analysis

GBP/USD pushes to session highs for the day, price action now in a battle between the key hourly moving averages

GBP/USD H1 20-08
For bank trade ideas, check out eFX Plus

Near-term support at around 1.3067-74 held earlier today and that is helping to see buyers try to wrestle back some control in a push back above 1.3100 on the session.

Of note, buyers have managed to move back above the 200-hour MA (blue line) @ 1.3105and that is keeping the near-term bias now more neutral after having been more bearish earlier in the day.

That said, further resistance is seen from the 100-hour MA (red line) @ 1.3145.

The slight nudge higher comes as the dollar also pares gains against the euro and moves off earlier highs against the aussie and kiwi as well.

EUR/USD is back near flat levels at 1.1835 after dipping to a low of 1.1812 earlier. The price action in that chart also sees a battle between the key hourly moving averages, which is now proving to be a similar case for GBP/USD too.

What that tells us is that the near-term direction of the dollar is still largely indecisive following yesterday’s pullback. Momentum flows are one thing to consider amid the reversal yesterday, with the softer risk mood in trading today also a key factor.

European equities are still lower but off earlier lows, with US futures also seeing a similar move play out. E-minis are now down 0.3% after having dipped by 0.6% to 0.7% earlier.

Back to cable, it is now a battle between the key hourly moving averages again to determine which side the next directional shove will come.

Further resistance in any push to the upside can be seen closer towards 1.3200 with further support on any downside break can be seen closer to 1.3067-74 again before reaching 1.3050 and then the 1.3000-10 region.

Let’s block ads! (Why?)

Forexlive RSS Breaking technicalanalysis feed

Leave a Reply

Your email address will not be published. Required fields are marked *