The dollar is continuing to keep firmer on the session and that is pushing cable lower by 0.7% on the day as price continues to rest below the 100-hour MA (red line) in trading today.
That hints that sellers are wrestling back some near-term control in the pair and a drop back under 1.2300 will be a serious blow to the recent upside momentum seen last week.
Over the past few days, cable has been consolidating around 1.2300 to 1.2500 as buyers mostly kept above the 100-hour MA but were unable to go in search of a firm break above the 1.2500 handle.
If price starts to see a firm drop below 1.2300, there will be a real threat to the upside momentum with further support seen closer to the week's low @ 1.2245 and then the 200-hour MA (blue line) @ 1.2205.
The latter will be a key level to watch out for as a break below that will open up the path for further downside momentum back towards 1.2000 next.
As for the fundamentals today, the dollar side of the equation is arguably the key driver so pay attention to any potential shift in the risks mood in US trading. The Fed may also potentially step in so just be mindful of that.
Otherwise, the dollar should keep up its momentum on a weaker euro and softer emerging market flows as seen during the course of this week.