Cable lingers around 1.3060, near the 200-hour moving average now
The overnight move was limited around the 38.2 retracement level @ 1.3046 but the push higher today comes after better revisions to theinitial PMI data for January.
That now sees price move higher to challenge a break above the 200-hour MA (blue line) @ 1.3059 and looks towards 50.0 retracement level and the 100-hour MA (red line), both @ 1.3078 currently.
Move above that and buyers will establish a more bullish near-term bias with the next key resistance level seen at 1.3100.
As things stand, the pair is still largely trading off technicals at the moment after making new lows for the year yesterday just under 1.2950. The quick bounce back above 1.3000 sort of puts the pair in a bit of a reset and now with near-term bias back around the key hourly moving averages, it is all about the battle for near-term control.
The risk for buyers is if price falls back under 1.3000 as that will potentially open up a move to test the support region around 1.2955-75 as well as yesterday's low @ 1.2941.
Meanwhile, the risk for sellers now is if price starts to chase a firm move above the key hourly moving averages and the 1.3100 level. That opens up a potential for a retest of the highs seen at the end of last week, just above 1.3200.
There isn't any key UK data releases left for the week so just be mindful of Brexit headlines for the pound side of the equation. As for the dollar, continue to keep an eye on the risk mood but also be mindful of the US jobs report due on Friday.
