The pair is down 0.3% to 1.2527 currently with the dollar keeping a slight advance across the board on the day. But for GBP/USD, the slight drop also comes after a run up against its 200-day moving average (blue line) from yesterday. The key technical level is seen at 1.2553 currently and is helping to limit upside so far on the week.
Amid the back and forth in the dollar, it looks like we might have to wait until the Fed tomorrow to settle the score.
The hourly chart shows that the 100-hour moving average for cable is seen closer to 1.2500 now. As such, it would take a break of that for sellers to establish themselves more on the week. Otherwise, buyers will stay in near-term control in poking and prodding at the key upside level above.
Keep in mind that it is also non-farm payrolls week. So, the US ADP employment data tomorrow could offer a bit of something for traders to react upon as well.
