Cable falls to session low as sellers threaten near-term break

Technical Analysis

GBP/USD closes in on a test of the 200-hour moving average


The pound is slipping across the board ahead of UK data to be released at the bottom of the hour. Despite economic data in the immediate focus, it’s still all about Brexit at the end of the day and with the situation still unclear ahead of next week’s Brexit deal vote it is making for jittery tones after buyers are unable to hold price above the 100-hour MA (red line) earlier today.

For now, price is heading towards a test of the 200-hour MA (blue line) as sellers will be looking for a break below that and the 1.2700 handle to confirm a further move to the downside ahead of next week’s meaningful vote.

I would expect UK data to be released at the bottom of the hour to have minimal impact so keep an eye on the technical levels thereafter to see if we’ll get a further extension to the downside.

Update: Price now falls to a low of 1.2710, testing the 200-hour MA @ 1.2713.

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