On the balance of things, the dollar is slightly softer across the board now as markets lean towards being more risk-on in trading today. The pound is doing that thing again where it is acting more like a commodity currency as cable nudges higher to 1.2330 - its highest since 17 June.
Of note, it breaks short-term resistance around 1.2315-23 and with buyers in near-term control (price action above the key hourly moving averages), the focus switches to key resistance at 1.2400. A look at the daily chart:
Cable has been caught in a bit of no man's land in the past week as the push below 1.2000 failed to hold while the bounce back also failed to breach resistance at 1.2400 alongside the 61.8 Fib retracement level at 1.2387. As such, those two levels will continue to define the next potential breakout in price action for GBP/USD.
For now, markets are leaning towards being more risk positive with US futures now up 0.6% and European indices clawing to 1% gains across the board. That is pinning the dollar a little lower on the day with EUR/USD also up 0.2% to 1.0580 at the moment.
