SQUARED DIRECT – The British Pound blasted through multiple resistance levels on Friday after surging around 500 pips, courtesy of the victory of the UK Conservative Party. The bulls, however, lost steam after this huge move as price pulled back to find support at the 1.33 level. The overall momentum remains bullish on the Cable as the market expects an improvement in the UK’s manufacturing sector activity, as both the Manufacturing and Services PMI is forecasted to beat expectations.
Looking ahead, the Sterling bulls will keep up the charge as the UK looks to clear the Brexit Withdrawal Agreement in the parliament before Christmas while the Bank of England could signal a readiness to alter course on the monetary policy, with the UK election out of the way.
GBPUSD Technical Analysis
The Cable broke above levels that was last seen back in May, as the overall sentiment turned very bullish. Price pulled back to 1.33 on Friday after reaching as high as 1.3515 in extreme overbought conditions. Today, the bulls are back in charge in an attempt to retest Friday’s high. If however, the momentum is lost, and 1.33 is broken, then the bears will take back control in the short-term pushing the Pound towards 1.3230 support.
Support: 1.33 / 1.3230
Resistance: 1.3515 / 1.36
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