Sellers explore the range between the key hourly moving averages
The pound is easing to fresh lows on the day now as the dollar is a touch firmer amid some shakiness in risk trades ahead of North American trading.
The euro is still largely holding its ground, so the continued push higher in EUR/GBP is not really helping the pound’s plight at the moment.
For cable, the break under 1.3200 and the 100-hour MA (red line) earlier signified a change in the near-term bias to being more neutral and sellers defended the level since.
Now, they are exploring the range between the 200-hour MA (blue line) and 1.3200 with price action running into some minor support from the 38.2 retracement level @ 1.3138.
On the pound side of the equation, Brexit risks will continue to be a factor to be mindful about in the week ahead. But for now, the dollar/risk side of the equation is drawing focus in the market as we see risk trades slip a little.
Nasdaq futures have pared earlier gains while S&P 500 futures are now down 0.4% from around flat levels earlier. That will keep things interesting in the session ahead as the push and pull on the week continues.