The pound is up in European morning trade
Cable buyers are still keeping up a defense above 1.2700 as well as the confluence of the key daily moving averages @ 1.2722-30 as highlighted earlier in the day here.
That still remains the key technical level to watch for now, with the pound also hoping to take comfort from UK finance minister, Rishi Sunak's announcement on a wage support scheme - to help alleviate some pressure from the jobs market.
The current furlough scheme will expire at the end of October, so the UK economy needs some added help if it is to brave past more negative virus developments moving forward.
And that is arguably what pound buyers are banking on today, while leaning on the key technical levels mentioned above.
But amid ongoing pessimism from Brexit and virus developments, not to mention pressure on the BOE in pursuing negative rates, there is a good argument that Sunak's supportive pledge may be lost in the shuffle once all is said and done.
Looking at the near-term picture:
Sellers are struggling to try and keep a firm break under 1.2700 but price action is also hitting resistance from the overnight high @ 1.2777.
The 100-hour MA (red line) remains the key level to watch in case buyers make a play though. Keep below that and the near-term bias stays more bearish but break above and the bias will turn more neutral instead.
That will be the key near-term risk level for sellers to lean on in the sessions ahead.
