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

Technical Analysis

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

For bank trade ideas, check out eFX Plus

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.

Articles You May Like

Euro and Sterling Under Fire after PMIs, Swiss Franc Reverses Gains
USDJPY bounces off 100 bar MA on the 4-hour chart. Can the buyers keep the momentum?
The USDJPY, GBPUSD and USDCHF are each using the 100 hour MA as a risk/bias defining level
Yen and Swiss Franc Climb as Ukraine War Intensifies on 1000th Day
Major indices close higher for the trading week by the Russell 2000

Leave a Reply

Your email address will not be published.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