GBP/USD looks to hold a break above its 100-hour moving average
The pair is getting a decent boost on the session, after having recovered from the low yesterday at 1.2480 with buyers holding a defense around 1.2500-10 for the most part if you go by the near-term chart above.
Since then, the dollar has kept weaker amid the more upbeat risk mood and that is continuing into European morning trade today with cable pushing towards 1.2600 and is now looking to hold a break above its 100-hour MA (red line) @ 1.2596.
Keep above that and the near-term bias stays more bullish but fall back below that and the near-term bias will turn more neutral instead.
This will be a key battleground to watch for cable in the sessions ahead.
As for upside potential, resistance around 1.2665-70 remains a key spot to watch as that is where gains were limited in trading last week i.e. a hint of a triple-top pattern.
But ultimately, the 200-day moving average @ 1.2704 will be the key line in the sand to watch if buyers are to really try and push the agenda for a meaningful upside break.
I still see that as being a key impediment for the pound but a lot still hinges on risk sentiment i.e. dollar side of the equation at the moment.