Technical Analysis

Cable holds weaker but buyers still defending key near-term level for now

GBP/USD is down on dollar strength so far today

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Since then, it has been one-way traffic for cable and while buyers defended the 100-hour MA (red line) in late trading yesterday, it hasn’t been the case today as the near-term bias turns more neutral now.

However, buyers are making a stand at the 200-hour MA (blue line) – for now at least.

That level @ 1.2428 will be the key line in the sand for the sessions ahead as a break below that will see the near-term bias turn more bearish.

Dollar flows are the key driver to start the week but fundamentally, the pound may have more worries to consider in the coming weeks.

For one, the coronavirus situation in the UK is still not yet leading to any meaningful reopening of the economy. Add to the fact that post-Brexit trade negotiations are still going nowhere only increases risk factors ahead of the supposed June deadline for an extension.

Those will be the key things to focus on when looking at cable in the sessions ahead.

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