BUZZ-COMMENT-Sterling struggles to overcome moving average resistance
Feb 24 (Reuters) - Sterling is clinging to a choppy underlying daily bull trend versus the dollar, but recent sessions have brought stalling at the 100-day moving average.
Failure to close above the average, 1.2645, could bring a March 26 1.2442-1.2444 Ichimoku cloud twist into play. Cloud twists can appear to attract price action. Although not actually meeting the value of recent cloud twists, GBP/USD has shown a propensity to move towards them.
The daily cloud is falling but begins to level off at 1.2455 from February 27 and the cloud top could hold a deeper sterling reversal.
Initial support is provided by the 10-day moving average, currently at 1.2581. The average is backed up by the 1.2564 low from February 19.
The weekly Ichimoku cloud is also holding GBP/USD back. The rising cloud has capped the market, on a closing basis, since early December, and at present the base line is at 1.2654. The 100-week moving average is also at 1.2654.
Sterling's fortunes could change on a close above the 100-day moving average and bulls could then target the significant 200-day average, currently at 1.2787. The slower average has held sterling's topside since November.
Overall, there are several bearish technical pointers that suggest the main risk to sterling is to the downside.
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