The Pound surges on poll: GBPUSD forecast higher after 1.30 break

Intermediate
  • A more positive poll favouring the Conservative party over the past 24 hours has seen a stall in the narrowing in the polls recently between the Conservative and Labour parties.
  • The better performance by Labour had been a theme over the past week, but the halt and reveres of this trend in favour of the Tories saw the Pound leap higher on Wednesday.
  • Critically, GBPUSD broke back above 1.3000 and also through a key multi-month peak at 1.3013, to signal a technically more bullish tone (see below).
  • This sets risks higher for GBPUSD into the general election next week.

GBPUSD: Intermediate-term bull shift, upside risks

Day trade outlook

A Wednesday spike higher through the key cycle peak at 1.3013, to signal an intermediate-term bull shift and also to set the bias higher for Thursday.

  • We see an upside bias for 1.3136; break here aims for 1.3177 and 1.3212.
  • But below 1.3036 opens risk down to 1.2983, maybe towards 1.2930/29.

Intermediate-term outlook

An early December surge through the key 1.3013 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for 1.3177, 1.3397, 1.3473 and 1.3618.

What changes this? Below 1.2879 shifts the intermediate-term outlook back to neutral; through 1.2768 is needed for an intermediate-term bear theme.

4 Hour GBPUSD Chart

pound to usd chart

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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