GBP/USD: consolidated, technically bullish to the 55-week ma at 1.3012.

Ross J Burland FXStreet

Currently, GBP/USD is trading at 1.2810, up 0.25% on the day, having posted a daily high at 1.2849 and low at 1.2773.

GBP/USD is virtually flat on the day in a consolidation of the flash rally on the back of PM May's call for a snap election on June 8th to bring Westminster behind Brexit along with the nation and to increase her margin at the negotiating table. This event has given sterling a lead while the backdrop of a far stronger than expected UK economy gives investors a potentially better outlook amongst the G7 nations and currencies.

The market remains in consolidation in general as we await the French elections with only second-tier data to keep traders occupied. However, for the UK, retails sales will be a key event that could offer some sharp moves in the pound once again given the previous surprise data. Carney was speaking today in Washington but did not offer anything for markets.

BoE's Carney: I make a distinction between Brexit referendum and UK early elections

GBP/USD levels

Analysts at FXStreet explained that GBP/USD's near-term outlook is positive. "Sterling held steady yesterday, absorbing its recent sharp rally. The market has eroded key short-term resistance offered by the channel, the 200-day ma, the 1.2707 January high and the 1.2836 Long-term Fibo resistances. The break looks directional and we will assume an upside bias above 1.2620 (200-day ma). We would allow for allowing for further strength to the 55-week ma at 1.3012."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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