GBP/USD settles into ping pong range after recent push and pull

As will be the case with most dollar pairs this week, the focus will be on the anticipation ahead of the US jobs report on Friday. As such, the dollar itself might not have much to react to. And that could see GBP/USD stay caught inside a ping pong range as seen above.

The 100-day moving average (red line) is providing a bit of a ceiling to price action with the 200-day moving average (blue line) acting as the floor. The key levels are seen at 1.2650 and 1.2588 respectively at the moment. Hence, that defines the range of price action in cable as we await normal flows to resume this week.

Taking the above in consideration, the technical boundaries are quite clear for GBP/USD now. Break below the 200-day moving average and sellers will have stronger drive to retest the February lows of 1.2518-35. But break above the 100-day moving average, and buyers will have some push to at least test offers closer to 1.2700 next.

The pound side of the equation will not offer much this week. So, it’s all on the dollar for the most part. And that means the big one is of course the US jobs report. But in the meantime, at least continue to keep an eye out on Fed speakers and broader market sentiment.

This article was written by Justin Low at www.forexlive.com.