- Summary:
- The GBP pairs are inching higher as a new poll shows an increase in the Conservative Party's lead prior to the UK election of Dec 12.
The GBP is inching higher across some of its major pairings as a new UK election poll by Ipsos MORI shows that the support for the UK PM’s Conservative Party rose by three points to 44%.
In the latest of a series of opinion polls that have consistently shown a Conservative Party lead, Ipsos MORI’s poll shows British Prime Minister Boris Johnson’s Conservative Party has gained three points to take its lead to 44%. The support for the Labour Party also rose four points to 28%. Both parties have therefore take points off the Liberal Democrats and Nigel Farage’s Brexit Party, which have dropped 4 points each to 16% and 3% respectively.
The GBPCAD is pushing higher on this headline, as it trades at 1.72409, just short of its intraday high of 1.72486.
Technical Outlook for GBPCAD
As the markets await the speech by Bank of Canada Governor Poloz, the GBPCAD has broken above the near-term symmetrical triangle on the latest poll results. A Conservative Party victory is seen as providing UK PM Johnson with an easier path to push his Brexit agenda and this is seen as GBP-positive.
The breakout move could target 1.73198 as well as the previous highs of April 12 and 24 at the 1.75343 price level in that order, if the bullish view on the Pound continues.
A pullback targets the broken triangle border at 1.70884 if bullish pressure wanes. Price would have to retreat below 1.7000 to negate the ascending triangle, which then opens the door for further downside to 1.6794 (11 Jan and 10 June lows) in the near term, and 1.6602 in the medium term.