The GBP/USD pair consolidates around 1.3200, after a modest pullback at the beginning of the day met buying interest at 1.3167, so far the daily low. Despite risk aversion somehow eased after the weekend developments, the Pound holds on to its latest strength. The week will be quite busy in the UK, with a heap of relevant data, including inflation, employment, and BOE's monetary policy decision.
The pair has still chances to retest August high of 1.3266, given that there's little dollar's demand around, and seems unlikely the market will return to the greenback ahead of the Fed's meeting next week. Simply, there's no reason for a dollar's rally, but on the contrary, the macro and political environment should keep it under pressure.
Technically, the 4 hours chart shows that the 20 SMA maintains a strong bullish slope below the current level, now providing a dynamic support around 1.3120. In the same chart, technical indicators head nowhere, but within overbought territory, maintaining the risk towards the upside. Friday's high is the immediate resistance at 1.3223, ahead of the mentioned 1.3266 level for today, while below the mentioned daily low, the pair can extend its decline towards the mentioned 20 SMA at 1.3120.
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