Cable falls to fresh four-day lows under 1.2200

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD slips to its weakest levels since the start of the week

GBP/USD H1 22-05
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The pair is continuing to move lower as the dollar is seen extending gains to start the session, with risk sentiment continuing to stay sour amid Hong Kong-China tensions.

For cable, this sees price fall back under 1.2200 to its lowest since Monday as sellers look to keep below the near-term support at 1.2186 seen yesterday.

Notably, the topside moves over the past few sessions have been stalling around the key hourly moving averages and that is helping sellers to keep the downside pressure going.

Those levels remain the key line in the sand in the event of any threat of a return back to the upside in the pair ahead of the weekend (long weekend in the UK).

As such, sellers are now in near-term control and are looking poised to keep the downside momentum going amid the softer risk mood in the market.

The pound also has its own issues with short-term UK bond yields starting to get accustomed to negative territory amid more negative rates chatter by BOE policymakers.

That and Brexit risks will continue to pose challenges for the quid in the coming weeks.

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