Cable is down to session lows of 1.3031 currently, trading in a 32 pips range
The pound is nudging a little lower now after hitting a session high of 1.3063 in the past hour as cable looks to be stretching its price range for the day in early trades.
The overall range is still rather modest, just 32 pips, as we see gains still limited by the 5 February high @ 1.3070 for now.
Buyers are still maintaining near-term control as price keeps above the key hourly moving averages and the 1.3000 level, but with post-Brexit trade negotiations set to begin, there are some risks to be mindful about for the pound.
However, yesterday’s hopes for a fiscal boost is still running fresh in traders’ minds and that may still lend to some near-term strength in the currency.
For now, cable buyers need to try and chase a move back above 1.3070 and contest the 1.3100 handle to find the next leg higher. However, I reckon besides some short covering, there is little else to suggest such a move for now.
Meanwhile, sellers will be poised to try and look for a move back below 1.3000. That could set off further selling back towards a test of the key hourly moving averages around 1.2965-67 before a potential move towards 1.2900 will be eyed.