Cable sellers seize near-term control to start the session, what levels to look out for?

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD falls back below its 200-hour moving average

GBP/USD H1 14-07
For bank trade ideas, check out eFX Plus
The pound is facing some light pressure to start the session, with the weaker-than-expected UK May GDP report among the reasons weighing slightly on the currency.

That saw cable ease under its 200-hour MA (blue line) @ 1.2550 and sellers are now pushing the agenda as we see the pair hit fresh lows of 1.2522 on the session.

The near-term bias now shifts to being more bearish with further support seen closer towards 1.2500-10 next, before looking towards the swing region around 1.2440-60.

From a technical perspective, the pair also saw a bit of a triple-top pattern around 1.2660-70 and under its 200-day moving average (currently @ 1.2702).

The latter has been a key technical area that sellers have leaned on in the past and buyers failing to get close to a test of that once again is allowing sellers to gain some momentum and also seize near-term control currently.

For buyers, the goal today will be to fend off any potential run lower under 1.2500 and try to get back above the 200-hour MA @ 1.2550.

As for sellers, keeping below the 200-hour MA would be a good platform to build on as breaking below 1.2500 should see downside momentum in the pair accelerate.

Looking ahead this week, we'll still have some notable UK data (jobs and inflation) in the days ahead but risk sentiment will still be a key factor to watch for cable.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose