Cable continues choppy journey for the past week, what levels to be aware of?

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD eases slightly on the session to 1.2920

GBP/USD H1 20-10
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Besides the apparent weakness in the aussie and kiwi, most other major currencies are keeping little changed but the pound is starting to ease slightly on the session currently.

Cable is down to a low of 1.2920 as sellers keep near-term control upon defending the 100-hour MA (red line) and are looking to push for more downside momentum now.

Amid Brexit headlines (GBP impact) and US stimulus talks (USD and risk impact), the pair has been rather choppy over the past week as it bounces between levels just under 1.2900 and levels just above 1.3000.

The downside momentum is limited by swing region support at 1.2863-79 with the 50.0 retracement level of the late September move higher also helping out in that regard.

But before that, the 1.2900 level will also offer buyers a level to lean on should sellers try to push for a further downside move in the session ahead.

Meanwhile, topside momentum is more limited closer to 1.3000 with the daily trendline resistance from the 1 September high to 12 October high - now seen @ 1.3005 - also helping to cap gains as evident by yesterday's trading action as well.

As much as there are clear technical levels to define the price range and a possible momentum breakout in the pair, headline risks are still aplenty this week.

Brexit and US stimulus talks are still the two main focus areas of the market so that may very well keep cable on edge and any significant headline could easily influence the directional movement in the pair over the next few days.

For now, the choppy journey continues but amid the potential for a surprise headline to support any momentum breakout, be wary of the technical levels above.

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