Cable hits a session low of 1.2699
Light offers are seen lurking around the region here but the key support level is the 100-hour MA (red line) @ 1.2686. As mentioned earlier, that is the real risk for buyers in the near-term because if price falls below that, the near-term bias then turns more bearish again.
Although the dollar is holding steady for the most part today, the pound has also retreated following earlier gains seen in Asia Pacific trading. From a technical perspective, the drop comes as buyers failed to firmly break above the 200-hour MA (blue line).
Fundamentally, it’s a bit tough to size up the pound to start the week with London traders observing a holiday as we have the European Parliament election results, the Tory leadership contest, and month-end flows to weigh up.
It’s a bit of an unclear picture for the time being but as always, stick with what you see on the chart and limit/define your risk as such. The near-term chart is telling us that the bias is more neutral and we’d only get more clues if price starts to chase a break on either side of the hourly moving averages above.