The United Kingdom is likely to head for a general election after the opposition Labor party cleared the way. Leading UK indices fell on the news while the sterling did not budge.
The vote, which could take place as early as December, will be pivotal for the country. PM Johnson called for the elections after lawmakers vetoed his Brexit bill to enable the October 31 st deadline.
GBP/USD Likely Forming the Upside
The currency pair has been in a holding pattern following the gains. The currency pair rose to highs near 1.2960. The current consolidation shows that there is the potential for a breakout above this level.
This would validate the bullish flag pattern with the GBPUSD likely to break past 1.30 threshold. To the downside, the lower support at 1.2582 will be key.
