GBP/USD eases back to test its 200-hour moving average currently
It is all about headline risks for the pound to start the new week, as Brexit talks drag on into the new week as there is no official breakthrough over the weekend.
There were uneasy signs early on that saw the pound open with a gap lower around 1.3360 before reports/rumours of possible movement on fisheries helped to drag cable up to 1.3437. However, that is all fizzling now as cable slips to 1.3380.
Price has now slipped below its 100-hour moving average (red line) of 1.3411 and is testing the 200-hour moving average (blue line) @ 1.3381.
Keep above that and buyers still retain some near-term control but break below and sellers will start to seize back more near-term control in the pair.
Further key support is then seen closer to 1.3290-00, where the lows last week stalled.
As mentioned above, it is all about headline risks now and it comes down to whether or not one really believes that this is all still part of the political act between the two parties.
If so, then there is still hope that we will see white smoke eventually but how much pessimism can pound buyers tolerate in the meantime? Otherwise, if it boils down to technical differences being the ultimate divide, that will be a tougher task to bridge.
