What is the next step for GBP/USD price?
K PM Theresa May is out on the wires now, via Reuters, issuing a scheduled statement at the press conference in Downing Street.
Key Headlines: Election to be held 8th June, Britain is leaving EU and there can be no turning back, other parties oppose the government’s Brexit approach
The announcement was unexpected in that May has repeatedly said she was not looking to make such a move despite her party’s commanding lead in the polls. But, it would appear the Government believes a commanding victory in June would strengthen the UK’s hand in Brexit negotiations.
Markets appear to enjoy the prospect of how close the election is and see May strengthening her hand should the Conservative party gain a commanding majority.
If the elections grant the Conservative Party greater support, this could put the UK in a stronger position to negotiate Brexit, “which could strengthen the Pound,” notes Alexandra Russell-Oliver at Caxton FX.
At present polls show the Labour party to be 21 points behind the Conservative party which would suggest May has a good chance of securing a commanding majority
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| GBP/USD TECHNICAL ANALYSIS |
” What will happen to the Pound after Brexit?
Now, after a few explanations, go to the price chart and see the picture:
Currently, the pound has reached a resistance level at 1.2620 – this can be clearly seen on the chart
A breach of this area will send the pound to 1.31 + _
Make sure the trend remains negative as long as the GBP is below 1.34
On the other hand, an inability to stay above 1.2370-1.2430 will send it back to low levels”
Technical analysis:
As I wrote my last post 1.2620 area is the upper boulder for this cable, today we see that this boundary cross up, now the next step will be to test the last high in
Last February 1.27-price level – if he will continue to go up you should expect to see 1.30-1.31 level
Support level for this movement stay in 1.2530 – see the purple bands.
Only break above 1.34 area will confirm the trend has changed until then the sterling is in downtrend mode
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| GBP/USD FORECAST |
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