GBP/USD is trading higher on the day, with buyers looking to keep above the 100-day moving average
The generally softer dollar today is helping the pair keep higher once again, though it is trading off earlier highs of 1.2611 as dollar losses eased slightly on the session.
That said, the pair is still up by a little over 0.2% to 1.2580 levels now and more importantly is keeping above its 100-day MA (red line) @ 1.2569.
The key technical level there will be the one to watch ahead of the daily close today as it will help to define the battle between buyers and sellers.
Keep above that and buyers have more conviction to be chasing a move higher towards the April highs at 1.2643-48 as well as the 200-day MA (blue line) @ 1.2673.
Keep below that and sellers will still have a key area to lean on before approaching the next set of resistance levels mentioned above.
The dollar generally has been significantly weaker since trading last week but amid the approach to some key technical levels across multiple dollar pairs – this included – perhaps there may be room for some correction to the recent move.
Among other things, the pound side of the equation will also be a spot to watch as Brexit negotiations are ongoing this week so be wary of headlines on that front.