Cable sits in between both key hourly moving averages near 1.3000
After bouncing off the 200-hour MA (blue line) yesterday, topside momentum was capped by the trendline resistance near 1.3050 and we are now seeing price action settle back in between both key hourly moving averages again.
That suggest the near-term bias in the pair remains more neutral as we still have quite a few key data releases to navigate through this week:
Today: UK January inflation data
Tomorrow: UK January retail sales data
Friday: UK February flash PMI data
Barring a major hiccup today, a mild rebound in inflation will keep the status quo of the BOE likely to be sidelined until 2H 2020 as the focus will shift towards Q1 economic sentiment with retail sales and PMI data to guide the way this week.
From a technical perspective, gains are likely to stay limited once again by the trendline resistance at 1.3037 as well as further resistance around 1.3050-70.
Meanwhile, any downside pressure needs to clear the 200-hour MA @ 1.2978 before we can see a resumption of a potential move back towards 1.2900.
Otherwise, price action remains trapped in between these levels as we await a key catalyst to potentially push buyers or sellers to chase a break on either side.
