On the one hand, a more hawkish Fed and slightly more dovish BOE now makes for a clearer divergence in terms of central bank outlook for the pair. But this has been an ongoing factor for many months now, adding to the bleak outlook for the UK economy while the US economy is still keeping in a solid state.
However, all of the above are known unknowns and one can argue that it is in part what led to the plunge in cable towards 1.0400 - of course conditions were exacerbated by the gilts crisis amid the mini-budget fiasco.
But with that put aside now and the dollar also looking to hit a bit of a peak technically elsewhere, there is reason for cable buyers to be cautiously optimistic.
That said, looking at the chart above, price action is sort of caught in no man's land for the most part.
The 100-day moving average (red line) at 1.1676 and key trendline resistance at around 1.1710 are the major resistance points to be mindful about while I would argue that any downside push would require a break of 1.1200 first before the next support level at 1.1000.
But for now, the near-term bias is siding with the buyers as price is holding above the 200-hour moving average:
