GBP/USD backs off after failing to break the 100-hour moving average
The 50.0 retracement level of the recent downswing at 1.3182 also provides an added resistance level for cable along with the 100-hour MA (red line) @ 1.3183. The spike from the GDP revision earlier tested a high of 1.3183 but the pair has since fallen back down to 1.3150 levels now.
Across the board, EUR/GBP is also inching back up while GBP/JPY is moving back lower from the highs earlier. So, it is partially to do with sterling backing off as well.
As for GBP/USD, the above levels will now be key to watch along with that of the dollar index I must say. The upside move in cable also saw the dollar index fall to test the 100-hour MA again, and so far buyers are once again holding firm at the level as the dollar climbs back a little off the lows for the day.
If you're trading dollar pairs today, watch out for that 100-hour MA level in the dollar index. It's not always the case that we trade two charts at the same time, but this is one of those cases.
Anyway, levels to watch out for now in cable would be the 38.2 retracement level @ 1.3151 to see if buyers can maintain the momentum from the jolt earlier. If that fails, it's back towards 1.3100-10 we go.