Cable extends gains to over 1% as dollar eases further

Technical Analysis

GBP/USD buyers look to try and capture near-term control


Earlier, I mentioned that buyers need to do more to chase a move to the upside and currently they are trying to prove that as we see price close in on 1.1900.

Right now, price is challenging the 200-hour MA (blue line) with further resistance seen at 1.1934 from the Friday high. That said, a break above the former will see buyers regain near-term control of the pair and is a good platform to set up a move higher.

There remains plenty of moving parts (see the linked post above) in the equation still but for now, perhaps the near-term technical picture is starting to shift.

The market mood is also favouring a weaker dollar so there is some argument for a further retracement in cable but I wouldn’t be so sure to rule out dollar funding pressures and another risk fallout down the road.

Beyond the 1.1934 level, the 1.2000 handle remains key as well so be mindful of that.

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