- Summary:
- The GBPUSD pair found some strong support near the low of 8th October and started its bullish rally. Will political issues fuel up the GBP bulls?
The GBPUSD pair found some strong support near the low of 8th October and started its bullish rally. The pair secured a new high on 21st October at 1.3011. The critical resistance level at 1.3000 is also marked as the major psychological level. The recent victory of the Conservative party in the UK election polls is most likely to create a positive vibe in the mind of investors which in terms will uplift the bulls. But recovery attempt from this level is highly unlikely after such an extended bullish move. Before we see an active attempt to break above the 1.3000 marks, we might see a retest of the trend line support at 1.2914.
If the bulls get the initial kick from the support level at 1.2920 marks, the GBPUSD pair might target the high of 21st October. A clear break of that resistance level, might results it’s another strong bullish rally. On the contrary, price breaking below the trend line support at 1.2914 might result in sell-off. The first initial bearish target might be the nearest support level at 1.2794. But considering the bullish breakout of the triangle pattern, fundamental factors, the bulls are most likely to push the price higher. However, GBPUSD bulls need a strong catalyst to push through the 1.3000 marks. So, traders are advised to stay tuned with global economic news.