The pair is inching a little higher on the day, up by about 0.5% but has been largely consolidating between 1.2300 to 1.2500 for the most part over the past few days.
Trading today is more of the same as price climbs to keep above 1.2400 but it is mostly as buyers are defending the near-term bias by holding above the 100-hour MA (red line).
Any real upside momentum still needs a break of the 1.2500 level to see price really push the boundaries back towards 1.3000 potentially.
From a technical perspective, that is the key line in the sand that is limiting the upside move. Meanwhile, downside pressures may start to creep back in if price falls back below the 100-hour MA @ 1.2386 currently and more so if the 1.2300 level gives way.
In my view, the latter is still the decisive level in looking for further downside momentum.
As things stand, the dollar side of the equation remains one of the key drivers in trading this week. The greenback has been solid to push gains against the euro and some commodity currencies, but cable remains largely unaffected.
That is something that is working in the favour of the pound at least, so if dollar flows start to soften further with the risk mood improving, perhaps cable can look towards more conviction to break the 1.2500 level.
But if the better mood in US futures prove to be a false dawn and the yen and dollar return back to favour, those near-term levels in cable will start to come into play.