GBP/USD climbs to a session high of 1.2187
Price is now challenging near-term resistance around 1.2183-90 as buyers are looking for further upside momentum, following a consolidation period at the lows around 1.2100-50 over the last few days.
Of note, price is still holding above the 100-hour MA (red line) @ 1.2145 and that means that the near-term bias remains more neutral for the time being.
If price starts to chase a move above offers at 1.2200, the 200-hour MA (blue line) @ 1.2231 will be the next key line in the sand for the pair. A break above that could see further short covering before the market focus turns back on Brexit uncertainty later this month.
With UK parliament on a break and Brexit developments staying unchanged, the pound side of the equation is taking less heat with the dollar side in major focus right now amid ongoing trade tensions between US and China.
The greenback has been sluggish to start the week and remains that way so far in trading today after a brief recovery earlier.
In the bigger picture, perhaps cable has found a temporary reprieve near the March 2017 low of 1.2110 and the trendline support from August last year.
This could help with a technical rebound over the next few weeks before we turn our attention back to the mess that is Brexit and I reckon that is when sellers would feel more comfortable to add back to short positions.