Cable falls to three-week low as dollar continues to hold firm on the new day

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD hits a low of 1.2833 on the day

GBP/USD H1 12-02
ForexLive
Much like EUR/USD, cable has also hit two extremes in the span of less than an hour as price swings from a high of 1.2885 to a low of 1.2833 on the day. The dollar continues to hold up well and that is sending cable lower on the day to test support near 1.2831 from the 21 January low.

With yesterday's decline, price broke below the 100-day MA which means that the bias/momentum in the pair has turned more bearish and the near-term bearish bias will only help to give sellers renewed vigour to keep price lower from here.

As mentioned earlier, with no new Brexit developments, traders are left with pricing in a binary outcome ahead of the 29 March deadline. And given that there's no convincing signs of an Article 50 extension, increased risks of a no-deal Brexit will just keep weighing the pound lower in due course until something changes.

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