FxWirePro: GBP/USD runs out of steam but maintains bullish outlook

GBP/USD dipped on Monday as the dollar was buoyed after France's presidential election first-round win for the market's preferred candidate.

Uncertainties surrounding the French vote dissipated with traders starting to look past the global risk event after Centrist Emmanuel Macron, a pro-EU and former economy minister won the first round of voting and qualified for the May 7 runoff alongside far-right leader Marine Le Pen

Investors were concerned a victory for Le Pen could eventually put France on the path taken by Britain to leave the European Union.

However, further downside is set to be limited as the strong support at 1.2675 is set to hold the bears from declining further below and bring rebound back to higher levels.

To the upside, immediate resistance can be seen at 1.2838, a break above this level would expose the cable to next resistance level at 1.2903 levels.

To the downside strong support can be seen at 1.2756, a break below at this level will open the door towards next level at 1.2675.

Resistance Levels

R1:  1.2838 (38.2% Retracement level)

R2: 1.2903 (April 18th high)

R3: 1.2943 (23.6% Retracement level)

Support Levels

S1: 1.2756 (50 % Retracement level)                       

S2: 1.2675 (61.8 % Retracement level)

S3: 1.2600 (Psychological levels)