Cable nears the highs for the month as dollar continues year-end struggles

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GBP/USD moves back above 1.3600 in thin trading

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The dollar is keeping weaker across the board as its struggles going into the year-end continues, with EUR/USD having neared 1.2300 earlier and GBP/USD now climbing back above the 1.3600 handle in European trading.

The pair looks towards the highs for the month now close to 1.3619-24 as buyers push price back above the 100-hour moving average (red line) earlier.

Cable is one of the big movers on the day but thin liquidity conditions are still exacerbating price action for the most part in trading this week.

After the flattish reaction to the Brexit deal, there was the potential for the pound to run into some trouble from a ‘buy the rumour, sell the fact’ play but we are likely only to get more confirmation on such a move next week once liquidity returns.

As for now, there is resistance at 1.3619-24 to deal with for cable buyers and breaking that would be much needed to solidify any potential breakout in the new year.

This article was originally published by Forexlive.com. Read the original article here.