Cable falls back to near session lows around 1.2720 currently
The pound has seen an optimistic start to the week fade as we get things going here in the European morning, with cable falling off a test of the 200-hour MA (blue line) to around 1.2720 currently. While part of that is the dollar holding steady, it's also the pound giving up some of its earlier gains in Asia Pacific trading.
There's no specific reasoning as the move so far is rather modest and there isn't really anything driving fresh flows. From a technical perspective though, it can be viewed as a slight rejection at the 200-hour MA as buyers tried to seize near-term control.
That means the near-term bias remains more neutral with price sitting in between both key hourly moving averages. The 100-hour MA (red line) is seen @ 1.2686 currently and that is the risk level for buyers in chasing a move higher.
Meanwhile, for sellers, if price firmly holds a break above the 200-hour MA and swing region of 1.2742-57 there isn't much stopping price from moving towards the 1.2800 handle next.
As for today, liquidity conditions are a bit thin with UK and US markets observing holidays but just be wary of month-end flows potentially disrupting trading sentiment this week. Things may get a bit choppy as a result, so be mindful of how to factor that into your trading.
