Cable retreats below 1.3700 on firmer dollar, tests key near-term level

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD falls to a session low of 1.3686 as the dollar keeps firmer on the day

GBP/USD H1 08-02
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After having slipped in Friday trading, the dollar is coming back into favour today as Treasury yields keep higher in the European morning. That is now seeing the greenback push to sesion highs against a couple of major currencies, with cable down below 1.3700.

Of note, the push sees the pair run into a test of its 200-hour moving average (blue line) @ 1.3685. Keep above that and buyers will maintain a more bullish near-term bias but break below and the bias turns more neutral instead.

The 100-hour moving average (red line) provides an additional layer of support @ 1.3671.

The drop in cable also comes after some near-term technical resistance in getting above the Friday highs close to 1.3740, with daily resistance still seen around 1.3746-58.

Looking elsewhere, EUR/GBP is also maintaining a modest bounce from the low last week of 0.8740 to 0.8780 levels currently. The 100-hour moving average rests nearby @ 0.8790 and that will mark a key level to watch if sellers are to maintain a more bearish bias in the pair (in turn, a stronger bias for the pound to gain).

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