GBP/USD retreats to its 100-hour moving average after testing 1.3400
The pair hit a fresh three-month high earlier in the day, breaching 1.3400 briefly for the first time since 1 September as the high touched 1.3407.
However, buyers are unable to sustain the momentum so far and that saw gains trimmed back towards the 100-hour moving average (red line) now @ 1.3352.
Keep above that and the near-term bias stays more bullish but break below and the bias will turn more neutral with sellers to try and look for a potential test of the 200-hour moving average (blue line) @ 1.3331.
The dollar is still keeping weaker for the most part today but is off earlier lows, with the pound still looking rather uninspired as Brexit headlines continue to lead nowhere so far on the week; negotiations are still ongoing in London and keeping rather silent.
Further support is seen closer to 1.3290-00 and unless that gives way, I would argue that buyers are still in a firm spot to try and push the agenda towards testing 1.3400 especially since the dollar continues to look more vulnerable.
Of course, Brexit headlines will ultimately be a key factor to watch so be mindful of that as we navigate through the week ahead.
