February 3, 2023

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Cable a little higher to start the session but runs into near-term resistance

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GBP/USD moves up to 1.4120 but runs into test of the 100-hour moving average to start European trading

GBP/USD H1 16-06

The pair was on the ropes yesterday as sellers tried to hold a break below the swing region support at 1.4073-86 but things ultimately reversed going into the close.

That sets up yet another testing period for both buyers and sellers with the former able to take heart in a hot UK inflation report earlier in the day here.

For now, cable is seeing a slight nudge higher from 1.4090 to 1.4120 but gains are stalling at the 100-hour moving average (red line) – as it did earlier yesterday.

Further resistance is seen at the 200-hour moving average (blue line) @ 1.4132.

The Fed is still the key risk event on the day but at least for now, buyers are able to take some comfort from the UK inflation report – which might put some pressure on the BOE.

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