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GBP/USD: Chopping around but still going nowhere for now


The pound looked to be continuing its gradual track higher on the week earlier today and buyers even took a peek above the 200-hour moving average to try and establish a more bullish near-term bias.


However, price backed off after attempting a break above the 23.6 retracement level at 1.1832 before falling back towards testing the 100-hour moving average - where buyers staged a defense to prevent sellers from taking control.


That coincided with another period of dollar weakness as the market turned risk-on once again after a choppy day of trading as highlighted in more detail here.


For now, cable is maintaining mild gains as price action is caught in between both key hourly moving averages - meaning the near-term bias is more neutral.


As such, it is back to the drawing board - similar to yesterday - for pound buyers as the first attempt to seize back control fails.


Topside resistance is now defined by the 200-hour moving average and the 23.6 retracement level while downside support is defined by the 100-hour moving average.


Looking ahead tomorrow, the BOE policy decision and the US weekly initial jobless claims report will be the two key things to watch out for; alongside the focus on UK containment efforts on the virus outbreak as well as dollar funding pressures and the market risk mood that is.


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