The Cable bulls have been favored in the last few sessions, as the odds of PM Johnson’s victory in the upcoming snap general election is getting higher. The reason behind these higher odds is that the Brexit party is pulling out of many polls, which automatically helps PM Johnson towards victory. Polls from Britain Elects show Tories in the lead with 36.1% – up 1% since October 25 – while all other UK-wide parties are losing ground. The opposition Labour Party, led by Jeremy Corbyn, is down 0.4% to 24.9%. That puts the gap at over 12%. In addition, the US President Donald Trump also openly criticized the opposition Labour Party leader Jeremy Corbyn while saying that he will be “so bad” for Britain. The current bullish sentiment will remain favored in today’s session unless a major headline concerning Brexit changes the narrative.
The Pound buyers continue grinding up in this upward channel, possibly heading towards 1.3011 October highs. A Break above that level will open doors for further gains towards 1.3050. However, the bears need to break this recent bullish market structure, ideally by breaking below 1.2930 to halt the buyers’ domination in the short-term.
Support: 1.2930 / 1.2850
Resistance: 1.3011 / 1.3050