Even if markets may be struggling to find much conviction to start the new week, the technicals are always your best guide in trying to make sense of things. In the case of GBP/USD, it is proving to be the case as price moved towards testing the confluence of its 100 (red line) and 200-day (blue line) moving averages on Friday and yesterday, before bouncing higher.
The pair is now trading back above 1.2000 but essentially, it still really isn't going anywhere with the bigger picture still showing that price action is stuck between key support around 1.1840 to 1.1900 and key resistance at 1.2443-46 for now.
But on the part of buyers, it is a big win to be able to maintain that defense around the key daily moving averages noted above. Otherwise, a break below that will see the bias in cable turn towards being more bearish - increasing the conviction for sellers to chase a downside push below the key support at 1.1840 to 1.1900.
Month-end trading will factor into the equation today but until we get a breakout from the range noted above, GBP/USD is still largely trending sideways for the time being.
