Cable a little higher to start the session but runs into near-term resistance
GBP/USD moves up to 1.4120 but runs into test of the 100-hour moving average to start European trading
The pair was on the ropes yesterday as sellers tried to hold a break below the swing region support at 1.4073-86 but things ultimately reversed going into the close.
That sets up yet another testing period for both buyers and sellers with the former able to take heart in a hot UK inflation report earlier in the day here.
For now, cable is seeing a slight nudge higher from 1.4090 to 1.4120 but gains are stalling at the 100-hour moving average (red line) – as it did earlier yesterday.
Further resistance is seen at the 200-hour moving average (blue line) @ 1.4132.
The Fed is still the key risk event on the day but at least for now, buyers are able to take some comfort from the UK inflation report – which might put some pressure on the BOE.