GBP / USD up 1.2230 vs. 1.2200 earlier
The lows were supported today by support of the 50.0 retracement level from the higher slight rebound earlier in the week, before coming back above the MA at 100 hours (red line) @ 1.2198. This means that the short-term bias remains more neutral for the time being.
Coincidentally, the higher boost here comes after the exit from the British PMI earlier, to which I honestly wouldn’t attribute this decision, but that’s what it is.
However, the short-term image of the cable remains more or less unchanged.
Buyers are now moving back to a 200-hour MA test (blue line) at 1.2236. Stay below and the bias remains more neutral. Break above and the bias becomes more bullish, and buyers can try to take upward momentum.
That said, the resistance region around 1.2275-00 remains a key place for sellers to stand as seen earlier in the week. This will represent the key line in the sand for the pair if we see this upward movement continuing, for whatever reason.
The mood for risk is always softer during the session and this helps the dollar to stay underweight for the most part. As such, cable buyers will have their work cut out to try to break up the 1.2275-00 region if the current mood continues.
On the pound side, the gossip about negative rates, the risks of Brexit and the UK’s difficulties in coping with the coronavirus epidemic are still negative factors to take into account.