GBP / USD trades higher on the day as buyers seek to stay above the 100-day moving average
The generally softer dollar today is helping the pair to hold higher again, although it is trading from previous highs of 1.2611 as dollar losses eased slightly during the session.
That said, the pair is still up a little over 0.2% to 1.2580 now and, more importantly, remains above its 100-day MA (red line) @ 1.2569.
The key technical level will be the one to watch before the daily close today as it will help define the battle between buyers and sellers.
Stay on top of this and buyers are more convinced to continue a move to the April highs at 1.2643-48 as well as the MA at 200 days (blue line) @ 1.2673.
Stay below and sellers will always have a key area to tap into before approaching the next set of resistance levels mentioned above.
The dollar has generally been much weaker since trading last week, but in the midst of approaching some key technical levels across multiple pairs of dollars – including – there may be room for a correction in movement recent.
Among other things, the pound side of the equation will also be a place to watch as Brexit negotiations continue this week, so beware of headlines on this front.