GBP/USD: Bull cross confirmed, focus on UK parliamentary vote on December election

  • A long-term bull cross seen on technical charts favors the upside in GBP/USD. 
  • Gains will likely remain elusive if the UK parliament rejects early election offer. 

The path of least resistance for GBP/USD is on the higher side, according to a key technical indicator. Big gains, however, may remain elusive if the UK parliament again rejects Prime Minister Borish Johnson's December election offer.

Bull cross confirmed

The 50-day moving average has crossed above the 100-day moving average, confirming a bullish cross for the first time since February.

The crossover indicates a continuation of the recent rally from lows near 1.22 and so does the bull flag seen on the 4-hour chart.

Focus on UK political drama

The European Union on Monday granted a three-month Brexit extension and the UK parliament rejected Johnson's proposal for snap elections.

PM Johnson will call another vote on a December election Tuesday, which has a greater chance of success, as it would only need a simple majority to succeed – not two thirds as required in previous attempts, according to the BBC.

That said, Johnson would still need support from the Liberal Democrats and the Scottish National Party. The two parties have expressed willingness to support an early election if the PM satisfies three conditions: a no-deal Brexit is ruled out, there is no attempt to pass the PM's Brexit deal before the election and the election date is stipulated.

The British Pound will likely challenge recent highs above 1.30, as suggested by technical studies if the Parliament approves an early election. If the vote fails, then GBP may drop below support at 1.2788.

On the data front, the UK housing prices, Consumer Credit, Money Supply, and Mortgage Approvals are scheduled for release during the European trading hours. Across the pond, the focus will be on the US Consumer Confidence data and Pending Home Sales. 

Technical levels


Today last price 1.2848
Today Daily Change -0.0012
Today Daily Change % -0.09
Today daily open 1.286
Daily SMA20 1.2622
Daily SMA50 1.2436
Daily SMA100 1.2433
Daily SMA200 1.2715
Previous Daily High 1.2878
Previous Daily Low 1.2811
Previous Weekly High 1.3013
Previous Weekly Low 1.2787
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2852
Daily Fibonacci 61.8% 1.2836
Daily Pivot Point S1 1.2822
Daily Pivot Point S2 1.2783
Daily Pivot Point S3 1.2755
Daily Pivot Point R1 1.2888
Daily Pivot Point R2 1.2916
Daily Pivot Point R3 1.2955



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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News