GBP/USD: uncertainty surrounding the election in the UK [Video]
|GBP/USD
Once more we see Cable having rallied to the top of the expanding range (between $1.2765/$1.3010). This move has come primarily through dollar weakness but also with a hint of sterling strength. We still do not expect there to be sustainable direction on sterling (and by extension Cable) in front of the UK election. Subsequently, we would be very sceptical of any move to push above $1.3010. It was interesting to see on the hourly chart, several tests of $1.3010 in the past 24 hours, but no breakout. This morning a consolidation is forming. We expect the range to continue (there is a distinct uncertainty surrounding the election in the UK and this will restrict the moves in front of polling day. The hourly chart shows support initially at $1.2975 and a move below would likely usher in another retracement back at least towards $1.2880/$1.2900 area.
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