Cable inches towards key resistance near 1.3400 as dollar keeps softer to start the day

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD climbs to a session high of 1.3393

GBP/USD H1 01-12
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The pound is leading gains in the major currencies space, with cable inching near key resistance close to 1.3400 after buyers put up a stern defense of the 200-hour moving average (blue line) since trading yesterday.

The push back above the 100-hour moving average (red line) earlier today sees the near-term bias switch back to being more bullish and the momentum is continuing in the past 25 minutes as cable surges higher amid some weakness in the dollar.

EUR/USD is also up to a session high of 1.1967 as buyers recover following the rejection pullback from testing 1.2000 in trading yesterday.

Back to cable, we're still awaiting more news on the Brexit front so the pound side of the equation is still one to be wary about in trading this week.

That said, with the dollar perhaps continuing its woes from November into December trading, that will make it tough for cable sellers to really push for any downside momentum unless Brexit headlines disappoint.

If price manages to keep a firm break above 1.3400, there is little in the way stopping a retest of the 1 September high of 1.3483 from a technical perspective.

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