GBP/USD is up by over 100 pips on the day
The dollar is continuing to weaken across the board and that is leading to cable running to hit a session high of 1.2340 on the day now. Notably, cable is testing key near-term levels at around 1.2319-28 from the key hourly moving averages.
Keep a break above that and the near-term bias turns more bullish once again. That will open back up a path towards retesting last week's highs around 1.2470-85 potentially.
Further resistance is seen closer to the 1.2500 level thereafter.
Despite concerns in the pound surrounding the health of UK prime minister Boris Johnson, dollar flows are the main driver in trading today and the greenback is continuing to sit weaker across the board amid the risk-on mood in the market.
US futures are now up by 2% on the day with European equities also posting solid gains of over 3% across the board as the risk recovery continues to run its course.
For cable, the key hourly moving averages is the key defining technical area right now so look towards that as the driver of near-term sentiment in the sessions ahead.
