GBP/USD eases to a session low of 1.2132
Price now falls towards a test of the 100-hour MA (red line) @ 1.2130 as buyers are losing further momentum on the day. Topside price action remains limited by near-term resistance around 1.2175 overnight and since then, it's been a steady track lower for the pair.
This will be a key spot to watch out for in the session ahead to see if the pound has momentum to stay afloat over the next few days. Buyers need to keep price above both key hourly moving averages to maintain the near-term bias in their favour.
I don't believe the Brexit rhetoric has changed much despite the overnight comments. I would like to see more concrete evidence of a solution to the backstop issue before being convinced that the pound can move higher on that.
In the mean time, keep your eyes out on any commentary as Johnson meets with Merkel and Macron over the next two days. And as we look to wrap up the week, pay attention to Fed speakers at Jackson Hole as that will have the potential to influence the dollar side of the equation in cable.
