GBP/USD sellers seize near-term control and go in search of an extended push lower to start European trading

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The fall back below 1.3700 yesterday was a notable technical push as it brought cable price action back towards its key hourly moving averages.

Since then, price has played a bit of ping pong in between that before breaking lower now as sellers seize near-term control amid a firmer dollar in trading today.

Of note, cable has accelerated to the downside, falling from 1.3640 levels to 1.3610.

The break also sees price threaten to breach below key daily trendline support from the 21 December to 11 January low – just above 1.3650.

That leaves little in the way of a test of the 1.3600 handle now, with there being another trendline support from the 11 January to 18 January low @ 1.3604.

A firm break below the figure level will leave the pair vulnerable to a potential drop towards the 18 January low @ 1.3520 next.

The dollar side of the equation is staying as one of the main drivers of the market ahead of the Fed. However, the pound side of the equation also isn't lending much help.

As mentioned yesterday, the potentially false break in EUR/GBP at the end of last week could culminate in a further upside bounce and in turn, pressure the pound a little more:

EUR/GBP D1 26-01

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