Cable was looking perky earlier on in the day but the upside move that took out the key hourly moving averages quickly stalled around the 61.8 retracement level of the the swing move lower since the end of last week @ 1.2677.
There's also some minor resistance around 1.2685 and that region is helping to give sellers an area to lean on to ride on the slight pullback in the risk mood.
As such, the dollar has pared some losses across the board and we are also seeing cable fall back to test its key hourly moving averages @ 1.2622-44.
The 100-hour MA (red line) @ 1.2622 is a key spot to watch now in that regard. Keep above that and the near-term bias stays more neutral with buyers able to lean on that to try and work back towards moving above the 200-hour MA (blue line) @ 1.2644.
Break below the 100-hour MA @ 1.2622 and sellers will start to establish more near-term control in the pair and look to hunt towards the 1.2600 handle once again.
The risk mood remains the key driver to watch in trading today and so far stocks are still looking perky but has seen some of its earlier glow lost over the past two hours.
For the pound, the BOE is definitely the key risk event to watch this week but that only will come on Thursday so there's still much to navigate before we get to that.