The dollar loses a bit more ground to start the session
European equities are keeping modestly higher now and US futures are also pushing a little higher on the session, keeping the dollar slightly weaker on the day.
Notably, cable is back up to a high of 1.2589 as price runs into a test of the 100-hour MA (red line) @ 1.2584. That is a key level to watch for now, as sellers would look to keep below that to try and maintain near-term control in the pair.
A firm break back above that will see buyers turn the near-term bias back to being more neutral with further resistance regions then seen closer to 1.2620-35 before looking to revisit the 200-hour MA (blue line) @ 1.2646 currently.
The pound side of the equation should largely remain sidelined ahead of the BOE tomorrow, so for now it is mostly all about the dollar side of the equation.
As risk starts to look better on the day, the key near-term levels pointed out above will be ones to watch as those would be areas where sellers will look to lean on.
Meanwhile, key downside support is seen closer to the region around 1.2540-55.
If sellers can break below that, it will help to keep a push towards the 1.2500 handle. But for now, it is vital that they keep up a defense of the 100-hour MA @ 1.2584.