GBP/USD finally through 1.2900 on UK election polls, what next?

The GBP/USD pair found fresh buyers near 1.2865 region on several downside attempts, prompting a sharp move higher, as the bulls took out 1.29 handle in the European session.

GBP/USD rallies, despite downbeat UK services PMI

The major rallied hard over the last hour, rebounding sharply from dismal UK services PMI induced drop to 1.2865 levels, as the bulls breathed a sigh of relief on the latest ICM opinion poll results on the UK election. The ICM Poll showed that the UK PM May’s Conservatives are back as the favorites, with the lead expanding to 11 points against its rival –Labour party.

Moreover, stops got triggered in the spot above 1.2900 levels, taking the rate towards Wednesday’s high of 1.2921. However, it remains to be seen if cable can sustain the renewed uptick above 1.29 handle, as persisting risk-off trades amid mounting Gulf crisis could weigh on the risk currency GBP.

Markets now eagerly await the US dataflow in order to gauge next direction in the major, as we remain only 3 days away from the UK election.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “The 4 hours chart shows that the price is advancing above a bullish 20 SMA, while technical indicators have turned higher within positive territory. Nevertheless, the pair has a strong resistance around 1.2920, where selling interest has contained advances last week, and only above it the pair will turn actually bullish, with scope then to advance up to 1.2960. Below 1.2840 on the other hand, the pair will turn bearish, with scope then to decline towards the 1.2790/1.2800 price zone.”