GBP/USD Analysis: a breakout of the range between $1.2765/$1.3010
|GBP/USD
A breakout of the range between $1.2765/$1.3010 was unexpected, and given the magnitude of the bull move, reflects a market taking a view. Opinion polls very rarely call the result of the UK election, but with the Conservatives holding their lead, traders have gone for it (a Conservative majority is considered to be sterling positive). A big bull candle breakout, well clear of $1.3000 opens the next key resistance at $1.3175. On a technical basis, the breakout implies around 250 pips of upside in the coming weeks. The old resistance band $1.2975/$1.3010 is also now a basis of support. We would though caution that this breakout is certainly dependent on UK polling data remaining in favour of the Conservatives (it is our view that the result will be much closer than the current polling suggests). Any tightening will pull Cable back.
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.