Dollar loses some ground in early trades

Technical Analysis

Author: Justin Low | gbpusd

The greenback falls to session lows against the likes of the euro and pound

GBP/USD H1 12-02
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Notably, cable is up by 0.2% on the day currently as traders are stretching the ranges seen in dollar pairs on the day. EUR/USD is also inching back up towards a test of the 1.1300 handle. The greenback is also trading at the lows against the loonie and aussie too as we get the session underway.

As for cable, sellers remain in near-term control and there's minor resistance around 1.2880 before light offers are seen close to 1.2900. The key level though remains the 100-hour MA (red line) @ 1.2925. Stay below that and the near-term bias remains more bearish.

Theresa May is due to make her statement in parliament later but it won't offer much of anything new to traders as she seeks to buy more time to get her Brexit deal worked out. As it stands, the binary outcome of either a no-deal Brexit or an Article 50 extension continues to be the situation that traders will have to price in.

With 45 days to go and no convincing signs of a delayed Brexit just yet, there's only one option that traders can slowly and gradually price in at the moment so expect that to keep a lid on pound gains.

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