GBP/USD pares slight drop earlier, little changed on the session now

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD keeps closer to 1.3150 currently

GBP/USD H1 06-11
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The dollar is in a state of flux to start the day but overall, the changes across major currency pairs aren't anything major. Cable was consolidating around 1.3120-30 earlier but has now moved a little higher to 1.3150 as the dollar eases slightly.

However, the move isn't amounting to much with resistance still seen closer to the 61.9 retracement level @ 1.3174 with the 21 October high @ 1.3177 also offering an added technical challenge for buyers currently.

To the downside, sellers are struggling to gather any real momentum as the dollar continues to struggle during the week with 1.3100 still holding. Further support is also seen closer to 1.3000 with the key hourly moving averages resting nearby the figure level.

For now, Brexit news is taking a backseat as the market is largely more focused on the dollar side of the equation. The greenback continues to be pushed around by the election/risk focus but so far, stocks are a little more guarded in trading today.

European equities opened with little change but the DAX is now down 0.4% as we see US futures also tip back a little lower, with S&P 500 futures down 0.4% after closing in on flat levels about half an hour ago.

The argument here is that the dollar is being stretched - as we are seeing with EUR/USD as well - but not exactly breaking down completely just yet after the moves yesterday.

The next few sessions will go some way in deciding if buyers have enough momentum to break through the key resistance levels pointed out above, or if the greenback can hang on to keep price action more "competitive" as the election relief fades.

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