The positive PMI data released earlier has boosted the pound. Now trading at around £1.2117. A break and close above the 100-day MA may suggest a shift in sentiment.

The pound is trading around £1.2117 against the dollar. We can see the price is approaching the 100-day moving average on the 4 hourly timeframe, after gaining some momentum earlier from the positive PMI figures. The resistance sits on the 100-day MA, or £1.2124, a clear break and close above this level could see the pound break out of the bearish trend and potentially make a move higher. Hence, further resistance sits at £1.2146 then a major level at £1.2270. On the other hand, as the bears are still in control, support below sits at £1.2065 (50-day MA) followed by £1.2021 (20-day MA). MACD remains positive and so is RSI as it reads 63. Note to investors: a false breakout may occur as the bias remains negative, but the positive data released earlier may cause a shift in sentiment.