GBP/USD runs into a test of its 100-hour moving average once again

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The dollar is keeping higher across the board and while the pound was a relative outlier in trading yesterday, it is succumbing to some pressure against the greenback as cable eases back towards its 100-hour moving average (red line) today.

The pair tested the level earlier and held but the bounce failed to really gather much momentum to get above 1.3900 and here we are again @ 1.3869.

Keep above and the near-term bias stays more bullish but break below that and support around 1.3861-70 and buyers will start to lose some of the recent upside bias.

Further key support is then seen from the 200-hour moving average (blue line) @ 1.3822.

While the pound remains in a good spot, the dollar's resurgence since yesterday does cast some doubt on cable's poise to move towards 1.4000 for now – especially if the bond rout deepens once more going into US trading later today.

That might spark further dollar bids and a bout of risk aversion if equities sentiment starts to waver. As such, I'd prefer EUR/GBP as a bet on further pound gains at the moment with the pair testing waters below 0.8700 as the technical breakdown extends.

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