GBP/USD analysis: Weekly close suggests more gains ahead

GBP/USD Current price: 1.2802

The pound ended the week higher across the board boosted after PM May’s call for elections that triggered a rally. The sharp rise pushed the currency above key technical levels and triggered many stops. Elections are not too far and polls could start having an impact. Next week, the key economic number will be the Q1 GDP report. Also, the US will release growth data. 

The GBP/USD made an impressive rally on Tuesday, pulled back and spent the rest of the week consolidating important weekly gains. It posted the highest weekly close since October and it did it above a relevant technical, level suggesting that it could continue to rise. In order to clear the way to more gains, the pound needs to confirm levels on top of 1.2900; that could open the doors to 1.3000. A decline below 1.2750 could lead to another correction, while a decline under 1.2550, would invalidate the bullish weekly close. 

GBP/USD

Support levels: 1.2745 1.2680 1.2620

Resistance levels: 1.2860 1.2940 1.3000

View Live Chart for the GBP/USD

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