GBP/USD in a minor correction to 200-hr SMA as dollar’s advance runs out of steam

• GBP/USD stablising,  heading back to the 200-hr SMA.
• Dollar’s advance stalling,  US yields lower.

GBP/USD is stabalising on the 1.32 handle after meeting a recent low of 1.3200 on broad dollar strength as the NY session goes by. Currently, GBP/USD is trading at 1.3214 from a high of 1.3285.

The pair is now up testing the 200-hr SMA in the correction, located at 1.3222 as the dollar runs out of steam within the range of 94.0910-94.7690 in the DXY, +0.63% on the day so far. As for US yields are also falling off their highs between the 2.82-2.86% range, -0.19% at 2.84% and this is also indicating a respite in the dollar’s advance today.

Cable had been on a recovery yesterday and into the Asian session, eyes on Brexit

Cable had been on a recovery yesterday and into the Asian session, a move aided by positive M&A news with Fox agreeing to buy Sky and angst over Brexit declined after traders presume a soft Brexit on May’s plan that was welcome by Merkle., calling it a “solid step forward”, although she also added that “we’ll continue to have lively discussions (on the proposals)”. However, Bloomberg cited sources that noted EU diplomats have not fully started going through the UK plans yet. The Irish PM Varadkar was upbeat noting that the EU may be “entering into a space” where it can show flexibility in Brexit talks.  

GBP/USD levels

To the downside, the 10-D SMA holds at 1.3202 and the price remains above the descending channel’s prior resistance. On a breakdown back into the channel, the 1.3000’s are open. 1.3040 level, as the Nov 3 low. Deeper, eyes will turn to the 1.29 level. To the upside, the 1.3331 / weekly cloud top level is key ahead of 1.3461/80 that comes before the convergence of the 200-D SMA and 1.3597/1.3600.