The subtle dovish hints by the BOE yesterday was enough to pin the pair down, erasing the gains from earlier in the week. That is putting cable near where it left off on Friday but with the low today having tested the 100-day moving average (red line) of 1.2638.

That alongside the 61.8 Fib retracement level of the swing higher since April, at 1.2646, is helping to limit losses as we look towards the final stretch this week.

Keep above the 100-day moving average and buyers are still in to try and look for a rebound momentum. But break below, and sellers will have more conviction in chasing a push towards the 200-day moving average (blue line) next.

Coming up later today, the US PMI data for June will be one to watch in potentially deciding how this plays out before the weekend.

This article was written by Justin Low at www.forexlive.com.