Cable closes in on the week’s high as buyers stay in the hunt towards 1.4000

Technical Analysis

Buyers show their mettle on a bounce from the 200-hour moving average

The pair was caught in a near-term battle to start the session but as the dollar weakened, buyers capitalised on that with the shove lower in EUR/GBP also exacerbating gains in the pound as cable jumps towards 1.3950 on the session.

The high for the week rests at 1.3952 and if that gives way, there is little standing in the way of a further shove towards 1.4000 next.

The break in EUR/GBP to fresh lows since March and below the April lows @ 0.8671-82 also adds to further upside momentum in the pound.

The only caveat working against cable buyers right now is dollar sentiment, although that is seen on the softer side so far in European morning trade.

But with the bond market still a key focus this week, higher yields going into the weekend remains another risk factor to be mindful of in the sessions ahead.

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