Cable eases to a session low, tests key near-term level

GBP/USD sees early gains evaporate in fall to just under 1.2600

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The pair touched a high of 1.2666 earlier today but has since seen a retreat, after having formed a bit of a triple-top pattern just under the 200-day moving average @ 1.2701.

Most notably, price action is now moving back towards a test of the 100-hour MA (red line) @ 1.2598 as sellers threaten to try and seize back some near-term control.

Keep above that level and the near-term bias stays more bullish but break under that and the bias will then turn more neutral instead. The Friday low @ 1.2567 will offer some minor support on a break below with the 200-hour MA (blue line) @ 1.2536 one to watch.

It has been a quiet session so far with European trading today seemingly hit by another summer lull as the dollar pares its earlier losses to more flat levels now.

EUR/USD has also fallen from a high of 1.1336 to test its own 100-hour moving average @ 1.1303 and is holding just above that for the time being.