GBP/USD Forecast: Election polls back a bullish continuation

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2998

The latest election survey showed a widening advantage of Conservatives.
The UK Markit Construction PMI beat expectations in November, up to 45.3.
GBP/USD pressuring October highs, break above it exposes March’s top at 1.3176.

The GBP/USD pair is trading around the 1.3000 level, at its highest in over a month and close to October’s high at 1.3012. The pound’s strength came by the hand of fresh election polls, showing that Conservatives’ lead on Labors, widened to 12 points. Additional support for the UK currency came from the Markit Construction PMI, which rose in November to 45.3 from 44.2 previously, also beating the market’s expectations of 44.5. This Wednesday, Markit will release the November Services PMI for the UK, seen at 48.6, as previously estimated. Broad dollar’s weakness further backed the rally in the pair.

GBP/USD short-term technical outlook

The GBP/USD pair is technically bullish according to the 4-hour chart, as it keeps advancing above all of its moving averages, which stand some 100 pips below the current level. The Momentum indicator maintains its bullish slope while the RSI decelerated, although both stand in overbought territory. Beyond the mentioned October high, the pair has room to extend its gains toward the 1.3050/60 price zone, en route to 1.3176 March’s monthly high.

Support levels: 1.2970 1.2925 1.2880

Resistance levels: 1.3020 1.3055 1.3090

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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