Products You May Like
The pound slips alongside the euro on the day
And with that, cable falls to a low of 1.3132 on the day and price is threatening a break of yesterday’s low of 1.3138. But more importantly, sellers are looking to drive price below the two key hourly moving averages @ 1.3153 and 1.3142. Hold a move below that and near-term price bias turns more bearish.
It’s thin liquidity in trading now (twilight zone between Asian and European trading) but the technical breaks here are nothing to really scoff at. The key near-term price bias changes in both EUR/USD and GBP/USD is telling of a shift in near-term momentum for the dollar and this could set the tone for the rest of the day/week.
However, don’t forget that we’re also into month-end/quarter-end trading so that messes up with things a little bit. If dollar bulls are able to hold the breaks here until the week closes, it bodes well for a fresh start next month/quarter.
For now, support for cable is seen next at 1.3100 followed by the swing region between 1.3056-70. Resistance levels will come from the hourly moving averages above followed by 1.3177 and then the swing region between 1.3190-00.