Technical Analysis

Cable sellers stay in near-term control, eye fresh downside break

GBP/USD slips to a session low of 1.2619


Price is looking to break below minor support around 1.2633 as sellers are in search for a further move to the downside after having seen price action bounce around 1.2630-50 since overnight trading.

Cable continues to sit below both key hourly moving averages and that keeps sellers in near-term control with buyers struggling to bring price back above the 1.2650 level.

As we look towards the downside, further support is seen around 1.2600-12 next and that will be a key area of contention with little on the agenda to shake things up today.

The dollar side of the equation is taking a bit of a breather as markets wait to sort out further trade developments. The same can be said for the pound side of the equation as we continue to wait on the Tory leadership race outcome but one thing is clear… Regardless of Johnson or Hunt being elected as prime minister, there’s not going to be a straightforward positive Brexit outcome for the pound unless they can convince parliament to roll with the current deal that is on the table.

And that will continue to give sellers the added ammunition to play this on rallies still.

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