GBPUSD D1 06-05
GBP/USD daily chart

This is one of the pairs highlighted earlier in the day here, in relation to the dollar's vulnerability. After having closed back just under its 200-day moving average (blue line) on Friday, buyers are now looking to make a move again. Price is climbing up to 1.2580 and looking to breach the key technical level at 1.2547. Keep above that and there will be more breathing room on the way up.

There is still the 50.0 Fib retracement level of the swing lower in the last two months at 1.2596 though. But beyond that, the 100-day moving average (red line) will be the next key line in the sand for cable. That level is now seen only at 1.2642.

For now, it's not so much about the pound side of the equation as the dollar is feeling on edge since Friday. Besides USD/JPY, the greenback is slightly lower on the day across the board with cable pushing the range in European morning trade.

Later this week, sterling will also factor into the equation with the BOE coming up. No fireworks are expected from Bailey & co. but it will still be a key risk event to be mindful of.