The pound is the weakest performing major currency today

But despite that, cable is still holding above 1.2800 after an attempt to crack below it earlier. On the hourly chart, there was a candle close below the figure handle, but support from the 23.6 retracement level @ 1.2792 remains intact so far. Not only that, the swing region from 1.2800-10 also continues to provide support on the 4-hourly chart as shown above.

As sellers continue to struggle to find a firm break below the 1.2800 handle, it keeps buyers "in the game" and with the dollar turning as risk sentiment improves. All pound buyers need is a good Brexit headline to come and the pair will shoot higher; although those headlines have been hard to come by.

The session ahead looks like it will be a sluggish one as risk sentiment has improved but equities are still mostly in the red. It doesn't take much to tip the scales back and send risk trades tumbling again. And that will help to underpin the dollar and send cable lower in such an event. But the same can be said for the opposite if equities start seeing some green.

In terms of risk events, watch out for NAFTA talks as they will set the tone for the loonie and equities but also keep an eye out on emerging markets. The latter has been injecting large doses of concerns in markets and is what is keeping investors jittery. Not to forget there's also US-China trade tensions - which has quiet down a bit recently.

The public hearing is due to conclude tomorrow and if Trump is in the mood, those tariffs could be announced as early as Friday. That will be a kick in the teeth for risk.

Either way, technical levels need to be respected as well and with price trading below the two key hourly moving averages and now even below the two key SMAs on the 4-hourly chart, bias remains with sellers for GBP/USD.

But a firm break of 1.2800 needs to be observed for a further run lower towards at least 1.2700 again in my view. Otherwise, the stall here provides a good platform for buyers to stem the bleeding in the next few sessions.