Cable extends drop as dollar, yen sees light bids
GBP/USD touches a low of 1.3153 on the session
And price is testing a move to break below the 100-hour MA (red line) @ 1.3160 currently. Treasury yields are down to session lows on the day, with 10-year yields down 1.3 bps to 3.083% and that's weighing on yen pairs as European equities also slip a little at the start of trading here.
Of note, the aussie and kiwi has also pared some of its earlier gains against the greenback while USD/JPY is holding near session lows currently at 112.78. Apart from that, keep in mind month-end flows are also dictating play this week so that could be a contributing factor to the move we're seeing in bonds today.
As for GBP/USD, hold above the 100-hour MA and near-term price bias remains more bullish still. Break below and the 200-hour MA (blue line) will be the next level to watch out for. Should sellers hold a break below that too, then near-term bias turns more bearish.
The key again in trading today for yen pairs (because of yields) and cable will be the FOMC meeting to come, provided we don't get any Brexit headline surprises that is. In the meantime, I don't expect price to run away all too much but keep an eye out on Treasury yields' performance ahead of the Fed for any further clues here.