GBP/USD trades below the 200-hour MA for the first time since 15 February
The dollar is holding steady and is leading gains against the rest of the major bloc so far today, and that is helping cable sellers find a leg lower ahead of European trading. The big question now will be can they capitalise on the situation here?
It is the first time since 15 February that price falls below the 200-hour MA (blue line) and that sellers are seen to be in near-term control. Currently, there is minor support around 1.3130-40 before the 1.3100 handle will be called into question for further support.
Looking ahead, we'll have UK services PMI data to offer some direction for traders. The key thing to watch out for in the data release will be any drop towards contraction territory for the PMI prints. If it does, that will pose a bit of setback for the pound as Brexit uncertainty continues to weigh on the UK economy. And that will be something to consider in light of recent talks of a Brexit extension; prolonging said uncertainty.
For now, the technical bias is starting to favour sellers again in the near-term but let's see if they are able to build on that in the sessions ahead. Brexit developments continue to meet a standstill so we may be in for more choppy price action over the next week.
