Cable Moves Off Three-week Lows But Buyers Have More Work To Do

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GBP/USD H1 22-06

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The pound is looking to snap four consecutive days of losses against the dollar, with cable nudging higher to 1.2414 currently as the greenback weakens a little more on the session as stocks push higher in European trading.

European indices are nearing flat levels while US futures are looking to push towards 1% gains and that is helping to keep the dollar weaker at the moment.

For cable, that is seeing price action move away from three-week lows under 1.2400 and towards a test of the 23.6 retracement level from the swing move lower last week @ 1.2419. That is the first minor resistance for the pair currently.

Further up, there is the Friday high @ 1.2456 but buyers have much work to do in order to try and recapture some near-term momentum as the 100-hour MA (red line) is seen far away @ 1.2487 and the 200-hour MA (blue line) @ 1.2556.

Ultimately, those will be the key levels that buyers have to aim for in order to seize back near-term control in the pair. Otherwise, sellers will still be in charge.

It looks like the market is looking for some mild retracement today after the run over the past few days. As such, the levels above will be key to watch in terms of how much the nudge higher will amount to and a gauge of buyers' conviction.

Looking ahead today, US coronavirus figures will once again be the key thing to watch on the agenda in case it threatens to shake up the market mood.