GBP/USD daily chart
Cable did not enjoy much of the second-half of last week, falling to a one-month low in the process. But buyers managed to hang on, putting up a defense at the 200-day moving average (blue line) as seen above. That is helping to arrest any further downside momentum for the time being.
The key technical level is seen at 1.2590 currently and that is the line in the sand that sellers must cross to establish a stronger bearish bias. Otherwise, hold above and buyers are still in with a bit of a shout in the sessions ahead.
That being said, further upside remains more limited at present. The 100-day moving average (red line) at 1.2633 is the first key technical ceiling for price action currently. After that, there is still the key hourly moving averages further up, around 1.2685-20 at the moment. So, buyers really have their work cut out for them to turn the momentum around.
Looking to the days ahead, the factors impacting trading sentiment in the pair are not as straightforward as last week. For one, the technicals will be a crucial elemental force in play at the moment. Then, we’ll have to see how risk trades fare and what the bond market has to say as well. That considering the lack of key items on the economic calendar for the week ahead.
And so, if we do look at the technicals, the levels above are the ones to pay attention to for now.