GBP/USD climbs back above the 1.2300 level
Cable buyers are exerting more control in the pair upon the break of the key hourly moving averages earlier, and are running with the momentum towards 1.2300 now.
The pair is now trading to its highest levels in nearly two weeks, last seen above 1.2300 on 13 May. Price action is now looking to keep above that and it will be a solid platform for buyers to build on after the failed attempt to do so in trading last week.
The rise here is still in part largely to do with softer dollar flows, as the greenback extends its fall on the session against the rest of the major currencies basket.
Even EUR/USD has climbed to a high of 1.0965 currently with the aussie and kiwi posting gains of over 1% against the dollar at the moment.
For cable, keep above the 1.2300 level and buyers can look towards the 50.0 retracement level of the recent swing lower closer to 1.2360; though there is some minor resistance from the 13 May high @ 1.2340 just before that as well.
Looking ahead, EUR/GBP month-end flows will be something to consider over the next few days before Brexit risks start creeping in again.
The UK and EU are set for a final round of negotiations next week before the focus turns towards the transition period extension deadline on 30 June.
