Cable buyers still in search of a firm daily break above 1.3100 to start the week

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD holds a little above 1.3100 but buyers have failed to keep a break above the figure level into the close three times since last week

GBP/USD H1 17-08
Will this time be any different? For now, it is hard to see that materialise unless there is significant weakness in the dollar in the sessions ahead.

Cable buyers defended the 200-hour MA (blue line) on the session and kept the near-term bias more bullish in a push back above 1.3100.

But this is where they have struggled since last week with the resistance region around 1.3127-32 also playing a role in limiting the upside momentum over the past few days.

That will remain a key line in the sand in trading this week, with further resistance seen towards the 31 July and 6 August highs @ 1.3170-86.

As for downside levels, the key hourly moving averages @ 1.3073-87 will be ones to watch as a break under there will see sellers wrestle back more near-term control.

Beyond that, there is minor support closer to 1.3045-50 before the region around 1.3010-20 as well as the 1.3000 handle. The region between 1.3000 and 1.3200 has been the staple range for the pair since the end of July and those remain the key extremes to watch for any significant shift in momentum for cable.

Looking ahead this week, the risk mood remains a key factor to watch on the dollar side of the equation while the pound will have Brexit negotiations to keep an eye out for. On the latter though, we aren't likely to hear anything before Friday.
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