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Cable inches up to session highs, closes in on key near-term resistance level

Cable touches a high of 1.2971 on the day

ForexLive

The pound is inching a little higher on the session after it pared its earlier drop against the greenback as the latter surrendered early gains. The pair moved to a low of 1.2921 earlier on but the 5 February low helped to provide support for buyers to lean on and the pair is now making a run towards key near-term resistance in the form of  the 100-hour MA (red line) @ 1.2975.

The 100-hour MA has helped to stall any upside break since 30 January and will prove to be a key level for sellers to defend in the near-term. That said, I’d still be inclined to favour shorts in cable as long as price doesn’t firmly break above 1.3000. But with a break above the 100-hour MA, that conviction grows less strong.

There isn’t much headlines on the day that is driving the move here. Markets remain quiet ahead of North American trading so the best a trader can do is rely on technical levels to define and limit your risk while looking for opportunities such as the above to come by.

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