Cable hits the 1.3000 mark for the primary time in a 12 months

Despite a more negative day for equities, the dollar is not getting much love in trading today. Instead, traders are moving to the Japanese yen with USD/JPY itself down 1% to 156.75 currently. That comes amid a break of key trendline support in the pair, exacerbating the downside pressure. As the dollar struggles, GBP/USD is taking full advantage in a push to 1.3000 for the first time since July last year:

The shove higher also comes amid a break above its 200-week moving average (blue line) last week. And now buyers look to be finding a bit more appetite in pushing to test the 1.3000 mark.

The odds of a BOE rate cut in August have been trimmed after the UK CPI report earlier, seen around ~36% now. It was ~49% before we got the inflation numbers today.

The next key point to watch for the pair is the July 2023 high around 1.3140. A firm break above that could see cable buyers then set their sights on the 1.4000 mark in the bigger picture. That is a level that BofA is arguing to be a possible target here.