Cable buyers look to establish near-term control as dollar experiences further downside pressure

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD pushes to a high of 1.3157 on the day

GBP/USD H1 31-01
ForexLive
The greenback is coming under a fresh wave of selling pressure in European trading as it continues to fall against the likes of the euro, yen and sterling notably. Cable is now looking to break above the 100-hour MA (red line) after two failed attempts since overnight trading. If buyers manage a move back above that, the near-term bias will then turn more bullish.

At this stage, the Brexit rhetoric has gone a bit quiet and the theme that is driving direction in cable right now is that of dollar weakness. Should buyers hold a break above the 100-hour MA, expect price to build momentum towards a test of the 1.3200 handle again.

As it stands, the greenback continues to look rather weak as we begin European trading as EUR/USD looks to settle above 1.1500 and USD/JPY continuing its trajectory below the 109.00 handle.

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