GBP/USD buyers try to establish more upside momentum
The pair is managing to climb above its 200-hour MA (blue line) after a couple of failed attempts in trading yesterday, as buyers establish a more bullish near-term bias.
The push higher now sees buyers test 1.3000 and more notably the trendline resistance stretching back to 1 September - now seen @ 1.2993.
Keep above that and the 1.3000 handle and buyers will be able to keep the more bullish momentum going to retest the recent highs closer towards 1.3064-83.
But failure to do so will just spell out more trepidation in cable as we have seen over the past week or so between 1.2900 and 1.3000 for the most part.
The dollar side of the equation is the key focus for now as the greenback is being stretched across multiple currency pairs, most notably EUR/USD above 1.1800.
As for the pound, it is currently in a state of flux amid a Brexit standoff between the UK and EU on how to proceed forward in negotiations. Both sides have put out a message that they will 'intensify' talks moving forward, but there's no detailed plan yet.
Hence, just be wary of any Brexit headlines that could push the pound around but for now, things are keeping more quiet on that front with the focus of the market instead shifting more heavily towards the dollar and stimulus hopes.
