GBP/USD runs into key near-term resistance at 1.2100 again
It feels like a case of déjà vu for cable as day-after-day this week we’ve seen decent UK data to help propel the pound higher towards 1.2100 against the dollar, only for it to fizzle after.
Right now, price is back up to test the figure level again with the 200-hour MA (blue line) also lurking nearby at 1.2109. These will be the two key levels to watch out for in terms of any potential upside break in the pair.
Quite frankly, I don’t see much reason for the pound to climb significantly higher (besides short covering perhaps) considering that the data this week pretty much does nothing to change the BOE outlook amid prevailing Brexit uncertainty.
I’d be more inclined to risk shorts here considering the pattern this week but if we do see a technical break higher this week, it will make for more attractive opportunities ahead of renewed Brexit focus in September.