Cable slips to fresh two-week low amid firmer dollar

Technical Analysis

GBP/USD falls to its lowest level since 19 June


The low for the day hits 1.2551 as price now moves towards testing light bids around 1.2550 with further support seen closer to 1.2543 next. The move comes as the dollar is holding firmer against the rest of the major currencies bloc in the past half hour.

As mentioned in the earlier post, I reckon this has more to do with positioning play ahead of the US jobs report as there isn’t much action in equities or bonds to spark a move here.

But just analysing the cable chart, the near-term bias is still favouring sellers as price holds below both key hourly moving averages.

Hence, the risk for sellers on a poor US jobs report is if price starts to move back up to challenge the 100-hour MA (red line) @ 1.2601 and the 200-hour MA (blue line) @ 1.2648. Meanwhile, I reckon the 1.2500 handle will be a key area of interest should the US jobs report beat market expectations handily amid ongoing Brexit uncertainty still.

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