Cable stays pressured as sellers target push towards 100-day moving average

GBP/USD keeps closer to the lows for the day at 1.3670-75

GBP/USD D1 25-03
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As much as there is optimism in the pound due the anticipated strong recovery in the UK economy amid the quicker vaccine rollout, the dollar is also able to benefit from a similar tailwind as the US vaccine rollout gathers pace too.

The BOE and Fed will eventually get into a race on who will remove accommodative monetary policy sooner but after the early optimism in the quid to start the year, the dollar is starting to come back more into favour across multiple avenues now.

As mentioned yesterday, sellers are still very much poised to keep the downside going after the break below support @ 1.3776. This puts the focus on the 100-day moving average (red line) @ 1.3624 as the next key support level for cable.

A break below that will expose price action to the trendline support @ 1.3572 next.

It is all about the dollar at the moment and as much as cable may still have some prospects of rebounding later in the year, a deeper correction now can’t be ruled out as the dollar takes over as the key driver in the major currencies space.

Look out for EUR/USD and the 1.1800 handle as that could hold the key in dictating dollar sentiment ahead of the weekend.

Source

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