GBP/USD daily chart
This is one of the pairs highlighted earlier today, in relation to the dollar’s vulnerability. After closing just below its 200-day moving average (blue line) on Friday, buyers are now looking to move again. Price rises to 1.2580 and looks to breach the key technical level at 1.2547. Stay on top and you’ll have more room to maneuver on the way up.
There is, however, still the 50.0 Fib retracement level of the decline over the past two months, at 1.2596. But beyond that, the 100-day moving average (red line) will be the next key line in the sand for Cable. This level is now only visible at 1.2642.
For now, it’s not so much about the pound sterling as the dollar has been feeling nervous since Friday. Besides USD/JPY, the greenback is slightly lower on the day across the board, with Cable pushing the range in European morning trading.
Later this week, the British pound will also factor into the equation with the upcoming arrival of the BOE. No fireworks are expected from Bailey & co. but it will still be a major risk event to be aware of.
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