GBP/USD bounces a little as the dollar loses some ground
The dollar is slipping further on the session, with cable now touching a high of 1.2630 on the day after having bounced off a low of 1.2546 earlier.
The low came close to testing the 100-day MA (red line) @ 1.2541 and that is the key level to watch for any downside extension in the pair over the next few sessions.
But despite the slight bounce higher in trading today, sellers remain in near-term control as price action continues to sit below both key hourly moving averages:
In that sense, the swing region around 1.2619-28 also provides an area for sellers to congregate alongside the 200-hour MA (blue line) @ 1.2644 currently.
Keep below the latter and the near-term bias will remain more bearish in the pair. Hence, that will be the key level to watch should buyers start to contest for a break higher today.
For now, it is pretty much a tug of war between the key levels mentioned as the market continues to try and digest the risk/equities rout yesterday.
European equities are in a state of flux so far this morning but are mildly higher again now and that is keeping the dollar a little weaker, with US futures also seen stronger again now. S&P 500 futures are up by 1.2% at the moment.
