FxWirePro: GBP/USD gains some upside momentum but still bearish
GBP/USD recovered on Wednesday after a poll showed the country's ruling Conservative party still in the lead, overriding a previous projection of a hung parliament in elections next week. A new poll showed Prime Minister…
GBP/USD recovered on Wednesday after a poll showed the country's ruling Conservative party still in the lead, overriding a previous projection of a hung parliament in elections next week.
A new poll showed Prime Minister Theresa May's lead over the labour Party increased to 15 points, giving the pound some respite from a plunge on a YouGov projection that showed her Conservatives failing to secure an overall majority in the June 8 vote.
A weaker U.S. dollar also added to gains for the Sterling as the dollar dipped after data showed U.S. pending home sales dropped to 1.3 pct in April.
Sterling was up 0.3 percent higher on the day at $1.2899 in the afternoon US session, recovering from a low of $1.2770 hit in European session.
The pair remains under bears control unless until it trades below 1.2962 resistance level, therefore it is good to sell this pair on rallies.
To the upside, immediate resistance can be seen at 1.2926, a break above this level would expose to cable to next resistance level at 1.2962.
To the downside immediate support can be seen at 1.2889, a break below will open the door towards next level at 1.2841.
