GBP/USD break above 1.2950, hits 1-week highs before UK election

Cable broke above 1.2950 and climbed to 1.2968, reaching the highest level since May 25. GBP/USD remains near the highs, holding a bullish tone ahead of tomorrow’s UK elections. The pound gained momentum amid a decline of the US dollar in the market and also after a bounce back toward daily lows of EUR/GBP. 

UK ITV poll in Wales: Labour 46% vs. Conservatives 34%

The pair was quiet, moving between 1.2920 and 1.2890 but after it broke above 1.2920 it gained momentum and rose to test weekly highs located near 1.2950. It continues to rise and now it trading at 1.2960, 50 pips above yesterday’s closing price, headed toward the highest close in two weeks.

Technical outlook 

The pair continues to hold a bullish tone and if it manages to hold on top of 1.2950, a test of 1.3000 seems probable. A decline under 1.2950 would reduce the positive tone. 

The key dynamic support to the downside is seen around 1.2900, where an uptrend line that connects the daily lows of the last five days stands. A break lower could clear the way to an acceleration to the downside.