FxWirePro: GBP/USD holds above 1.2700 but upside is limited
GBP/USD declined on Friday as sterling was weighted down after Prime Minister Theresa May's Conservative Party lost its parliamentary majority in national elections, potentially disrupting Brexit negotiations. The outcom…
GBP/USD declined on Friday as sterling was weighted down after Prime Minister Theresa May's Conservative Party lost its parliamentary majority in national elections, potentially disrupting Brexit negotiations.
The outcome of the snap poll, called by Prime Minister Theresa May to try to bolster her parliamentary majority, was a blow to investors who had already weathered major risk events in the United States and Europe the previous day.
The result flagged the worst possible election outcome due to uncertainty, saw the pound fall as much as 2.5 percent.
The pair made daily lows at 1.12632 but recovered to trade at 1.2735 levels in the early US session.
Further upside for this pair is expected to be limited as strong resistance level at 1.2802 is set to limit upside and bring decline towards lower levels.
To the upside, immediate resistance can be seen at 1.2747, a break above this level would expose the cable to next resistance level at 1.2802 levels.
To the downside strong support can be seen at 1.2691, a break below at this level will open the door towards next level at 1.2625.
