GBP/USD rises above 1.2900 on expectations of a Tory majority
|- Pound rises across the board amid expectations of a large Tory majority.
- Cable test levels above a critical short-term resistance as it rebounds from strong support.
The GBP/USD pair broke a multi-hour range, climbing to 1.2912, the highest intraday level since last Friday. Near the end of a quiet session, it remains near the top testing the 1.2910 resistance area.
Pound up on fresh polls
The next YouGov poll for the December elections in the United Kingdom will be released at 22:00 GMT. According to a reporter, Prime Minister Boris Johnson's Conservatives have a significant majority over the Labour Party. Those comments triggered some moves on a quiet market ahead of US holidays. The sterling gained ground and pushed GBP/USD to the upside.
A positive mood in financial markets also offered support to the pair. Regarding the US dollar, it lost momentum over the last hours, erasing the gains that followed the release of US economic data. Initially, Treasury yields jumped but then pulled back, weakening the greenback.
More gains ahead?
The GBP/USD is trading around 12.2900/10, a break higher could signal further gains ahead in the short-term if a double bottom formation near 1.2820 is confirmed, being 1.2910 the neckline.
Another positive signal is that it is rebounding from a strong support level. On a wider perspective, the pair continues to move sideways between the mentioned support and the 1.3000 zone. So if the rebound goes on, a test of 1.3000 soon, should not be ruled out.
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