The dollar is benefiting from the negative risk sentiment at the start of the European morning
And that has seen cable fall back under the 1.3000 handle to a low of 1.2995 on the session. The move lower owes much to bids in the dollar on haven/risk-off flows, as the greenback gains alongside the likes of the yen and swissie on the session.
Of note, cable is now also slipping below the 100-day moving average @ 1.3003. That will be a key level to watch out for in trading today. If price breaks below that, expect sellers to gain further momentum to build on a downside move.
But as we look to close out the week, it’s all about US-China trade headlines and risk sentiment. Right now, sentiment is favouring the dollar as markets continue to be fearful and that’s helping the greenback advance against the likes of the euro, aussie and kiwi as well.
For cable, further near-term support is seen around 1.2988 before further support is seen closer to 1.2940-50 levels.