The pound sterling continued to maintain gains rising to new seven month highs on Thursday. The gains come as traders are pricing in a Tory victory. The UK heads to the polls of December 12th. Re-Election of the incumbent PM Boris Johnson is likely to pave way for an orderly Brexit in January next year.
GBP/USD Could Correct Lower
Although the currency pair has been posting strong gains, there is scope for a pullback. This will lead to a short term correction. For the moment, the psychological price level of 1.3100 remains key. If this level fails to hold as support, we anticipate the declines to push the GBP/USD down to 1.2960 which is pending a retest.
