The pound sterling was on the front foot on Monday following Friday’s declines. The gains come despite the US dollar rising strongly. Economic data from the UK remains sparse. Investors, however, look to the upcoming elections.
So far, poll pundits put Boris Johnson’s Conservative Party as the front runner. This potentially translates to the UK finally leaving the EU on January 31st, 2020 if the Tories win with a majority.
GBP/USD Reclaims Resistance Level
Price action in the currency pair saw a push above the resistance area of 1.2865. So far, prices remain confined within Friday’s range.
But, this could potentially indicate a near term breakout. There is a chance of an inverse head and shoulders pattern emerging near the current highs. At the same time, there is scope for price to break out lower. For the moment, we expect GBPUSD to remain within the said levels of 1.2865 and 1.2960.
