GBP/USD touches a high of 1.2743 on the session
The pound is staging a bit of a recovery across the board now as it moves higher against the rest of the major bloc. Notably, cable is continuing a bounce after having gathered support at 1.2700 from Asian trading today. The pound is also moving higher against the euro and yen with EUR/GBP falling to a low of 0.8908 and GBP/JPY moving up to a high of 144.17 so far this session.
There isn’t any major news to attribute the lift here to and to be fair, it doesn’t change the picture and outlook of the pound all too much. Minor resistance is seen at 1.2777 for cable from Friday’s low but the 100-hour MA (red line) and the downwards trendline resistance are still the two key levels to eye.
As long as price remains below that, the trade in the pair is still to sell on rallies as we move towards those key levels. As mentioned earlier, the pound outlook hasn’t changed so there’s no reason to throw away the playbook that has worked so far over the past two weeks.