GBP/USD analysis: 1.2860 holds the key to the next rally
|GBP/USD Current price: 1.2787
After outperforming yesterday, the pound made a modest retreat in the market on Wednesday. It preserved key technical levels that broke during Tuesday’s rally that followed PM May’s announcement of general elections. The UK Parliament approved the call, so there are no obstacles to the June election. The Conservative party is looking to strengthen its majority and the support to Theresa May, in order to carry the Brexit process with more political power. On the economic front, the next report in the UK, will be on Friday (retail sales). On Thursday, Bank of England governor, Mark Carney will deliver a speech.
The GBP/USD pair continues to hold a strong bullish tone in the short-term, despite Wednesday retreat. It pulled back after a sharp rally allowing technical indicators to start moving away from extreme levels. The correction or the consolidation could continue during the Asian hours. The 1.2740 area looks to be a zone that should limit the correction and offer from there, a rebound. Only a move under 1.2590, not seen likely, would change the short-term bias. To the upside, a consolidation above 1.2850/60, would add support for a break above 1.2900.
Support levels: 1.2745 1.2680 1.2620
Resistance levels: 1.2810 1.2860 1.2940
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.