The GBP has seen a hopeful begin to the week blur as we get things moving here in the European morning, with the GBPUSD pair dropping off a test of the 200-hour Moving Average to around 1.2715 at this moment. While some portion of that is the US Dollar holding firm, it’s the GBP surrendering some of its prior gains in Asia Pacific trading, too.
There is no particular thinking as the move so far is fairly humble and there isn’t generally anything driving fresh flows. From a technical point of view however, it tends to be seen as a slight rejection at the 200-hour Moving Average as buyers attempted to grab near term control.
That implies the near term bias stays more unbiased with price sitting in among both key hourly MA. The 100-hour MA is seen at 1.2686 right now and that is therisk level for buyers in pursuing a move higher.
In the mean time, for sellers, if price solidly holds a break over the 200-hour MA and swing area of 1.2740-60 there isn’t much preventing price from moving towards the 1.2800 round figure mark.