GBP/USD runs into near-term resistance around 1.3170
The region around 1.3170-86 (also 1.3162 if you want to be picky) is still capping gains in the pair since the end of July as buyers try to push for further upside momentum to start European morning trade today.
The near-term bias is keeping more bullish after buyers defended a test of the key hourly moving averages in trading yesterday, before pushing higher in the past few hours.
For the most part, it is all about dollar weakness today but the pound is among the leading gainers overall. A break above the resistance region of 1.3170-86 will call into question the 9 March high @ 1.3200 and that will be a key upside target to watch.
European equities are keeping softer to start the day with US futures also slightly lower but nothing too extensive. But Treasury yields are weighed lower, with 10-year yields down by 2.6 bps to 0.662% and that is weighing on USD/JPY in general too.
Back to cable, the risk for buyers is if price falls back towards the region around 1.3127-32 first. That will knock some of the wind in the sails of buyers but the key near-term levels to watch are still the confluence of the key hourly moving averages @ 1.3083-85.
