GBP/USD continues to inch higher during the session, at 1.2945-50 now
The weaker dollar is continuing to keep cable buoyed as buyers look to extend the upside momentum beyond a break of the 1.2900 handle.
There is some swing region resistance around 1.2950 from the 24 October high but after that, buyers will be aiming for a move towards testing resistance/offers around 1.3000-12.
As things stand, the near-term technical levels across the dollar pairs are siding against the greenback and cable is no exception to that.
Buyers are in near-term control now as they hold a break above the key hourly moving averages but key resistance levels such as the 1.3000 level here (1.1200 or 200-day moving average in EUR/USD) are yet to be breached.
Markets are still continuing to digest the aftermath of the Fed decision yesterday and I reckon there could be a lot of push and pull in the mean time.
In the short-term, the non-farm payrolls data tomorrow may have a big say in guiding the market reaction temporarily as there is some indecision about the dollar.
Should the greenback really weaken further as the Fed hits the pause button on rate cuts? But what happens if economic data worsens from hereon? Is a rate cut going to come back on the table for December or January?
As such, pay attention to the technicals as noted above as well to have a better understanding of how markets are behaving in reaction to the FOMC meeting yesterday.
