Cable trims losses as pound snaps back on test of key support region

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD runs into test of its 100 and 200-day moving averages, rebounds back to near 1.2800 currently

The low in the past hour hit 1.2713 and that challenged key support from the 100 and 200-day moving averages @ 1.2722-25, and the pair is now snapping back to 1.2790 levels in European morning trade.

BOE governor Bailey's remarks on negative rates may perhaps be a reason for that as well, but frankly I don't see much in that to spark a major turnaround in the pound.

This looks more like a technical bounce for now as we hit key levels on the chart. The close today will certainly be interesting but I don't see reason for sellers to jump ship just yet.
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