Cable extends gains to over 1% as dollar eases further

Technical Analysis

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

ForexLive

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.

Articles You May Like

Forex Trading | Watch Me Make $3,878 Trading Eur/USD
Ultima EA: Fully Automated Trading System for the Forex Market
US President Trump wants a tax break for firms sending employees for a meal at a restaurant
FOREX: HUNDREDS OF PIPS IN A FEW HOURS
3 reasons why USD/JPY is heading back down to 105