GBP/USD moves to a high of 1.2779, the highest level since 12 March
Dollar weakness continues to be the fuel to drive the run higher in cable, with the pound also shrugging off negative Brexit developments from last week for the most part.
For cable, a close higher today will represent ten consecutive days of gains after the slight retracement yesterday was bought up at key technical levels.
In terms of daily levels, the 200-day MA (blue line) provides a key level for buyers to lean on and that resides at around 1.2687 but at the lows yesterday, buyers leaned on the 100-hour moving average (now @ 1.2669) for support as well.
They kept price action above that and maintained a more bullish near-term bias, leading to the rebound in cable during US trading back above 1.2700.
And the run higher continues in the new day as the dollar is seen weaker on the session.
The key risk event today is of course the Fed but should they give the green light for the risk party to keep going, the dollar could be in further trouble with little resistance seen in cable all the way towards 1.3000 potentially from hereon.
For now, buyers are keeping the momentum and are staying in control. So, let's see how the Fed may change that up later in the day.
