GBP/USD sits in between its key hourly moving averages currently
The pair rose to a high of 1.2522 earlier in the day on the back of a softer dollar and more positive risk appetite, but buyers failed to break the 100-hour MA (red line) and since then price action remains caught in a battle between the key hourly moving averages.
Price fell back below 1.2500 and is now settling just above the 200-hour MA (blue line) @ 1.2463, around the 1.2470-80 levels.
After the fall from a test near its 200-day moving average at the start of the week, price action in the pair has largely centered around the key hourly moving averages since.
Sellers tried to aim for a break to the downside yesterday but was met with support around the 1.2400 level with the 50.0 retracement level @ 1.2407 also nearby.
The latest flip flop in the pair continues to hint that the near-term bias remains more neutral with buyers and sellers still in search of that key directional break.
The risk appetite today is more positive but investors are starting to show some hints of doubt about that in the currencies space as we begin European morning trade.
It is going to be a real tug of war right now with key risk barometers i.e. AUD and JPY pairs starting to look a bit shaky to start the session.
For cable, patience in waiting for the next key directional break remains the most important element as trading over the past few days remains choppy and stuck around the key hourly moving averages.