GBPUSD: Cable Retakes 1.30, Fights for 100 DMA

The Pound soared on Thursday, which brought the GBPUSD pair back to the psychological level of 1.30 and the Sterling is now trying to settle above this level. It was seen at 0.25 per cent stronger during the London session on Monday.

The next resistance for bulls is at the 100-day moving average near 1.3040 and if this level is broken, the trend might switch back to bullish, at least from the short-term point of view. Another area which could be worth paying attention to at the short-term bearish trend line, could be slightly below the 1.32 mark.

On the other hand, the support for today’s trading could be at 1.2920. For this positive outlook to be maintained, the Pound needs to stay above this level.

The major support remains at last week’s lows at 1.27 and it seems like this could be a double bottom formation on the daily chart. If the Sterling receives a positive boost from an unexpected soft Brexit deal, the resistance of this pattern could be at 1.33, with the potential of this formation toward the 1.39 level.

The Dollar index failed to push to new cycle highs and slid from the 97.00 level, which could boost the Sterling over the next couple of days.

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