Cable tests key near-term levels again after losing altitude on push above 1.3700

Technical Analysis

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GBP/USD falls from a high of 1.3723 earlier to 1.3668 currently

The dollar regaining some poise during the session is pushing cable to fresh lows on the session and notably, testing key near-term levels once again.

The drop after failing to hold yet another break above 1.3700 – at least for a comfortable enough period – sees cable fall back to test its 100-hour moving average (red line) @ 1.3678. Keep below and the near-term bias stays more neutral now.

For buyers, they will have to try and push back above that in order to take another run at a firm breach above 1.3700 and last week’s highs around 1.3738-46 preferably.

As for downside levels to watch, the 200-hour moving average (blue line) @ 1.3649 will be a key one to be mindful of as that helped to limit the drop on Friday.

A push below that will see sellers regain near-term control and potentially look to post a daily close below trendline support from the 21 December to 11 January low @ 1.3628.

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