GBP/USD trades a little higher on the day as buyers keep up the momentum after a break above 1.3200 in trading yesterday
The pair is now trading at 1.3250-60 levels, building off the momentum from yesterday where the dollar faltered and price action broke above the 9 March high @ 1.3200.
That also saw the pair move away from its consolidation range since the end of July around 1.3000 to 1.3170-86, and is now opening up further momentum for buyers.
The next key resistance target will be the 31 December high @ 1.3284 with the high this year set on 1 January @ 1.3278. That will be a key spot to watch in case buyers start to extend the upside momentum in the sessions ahead.
Following that, there isn't much in the way before getting to the 1.3400 handle.
Looking ahead today, the dollar performance will once again be a key consideration after the struggles seen over the past two days.
The dollar was in a precarious spot at the start of European trading yesterday, and sellers took advantage to push below key technical levels in North American trading.
That will once again be a feature in trading today so be mindful of that as we continue to navigate through a tricky August period so far.
Back to cable, the risk for buyers is if price action falls back towards 1.3200. That will be the first key step for sellers if they want to try and wrestle back some control.
