GBPUSD Seesaws Ahead of Fed and UK Election

GBPUSD pares earlier losses and hits the unchanged level for the day at 1.3149 after the recent polls suggest a narrowing Conservative’s lead, with the majority now dropped to 28 seats from 68 seats, increasing the possibility of a hung UK parliament.

GBPUSD recent strength helped by the polls that show the Conservatives leading the race to general elections tomorrow. The lead in the polls estimated between 8% and 12% suggesting a clear majority an estimate that is GBP positive.

Traders have a busy 24 hours ahead as the focus will turn to FOMC and ECB decisions while we are approaching the December 15th deadline on additional tariffs by the US administration to Chinese products.

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GBPUSD Bulls Need a Break Above 1.3214

GBPUSD trades 0.05% lower at 1.3146 in choppy trading ahead of the central banks decisions. Yesterday the pair breached the 1.32 mark making fresh seven-month highs but rejected at 1.3214 and retreated back to mid 1.31.  The technical outlook is clearly bullish for the pair.

Bulls need to break above then daily high at 1.3158 in order to refuel the upward move. GBPUSD will face the next resistance at 1.3214 the high from yesterday’s session. A close above yesterday’s high, will pave the way for a move up to 1.3254 the March 3rd high.

On the downside, first support for GBPUSD stands at 1.3104 the daily low and then at 1.2982 the low from December 4th. The next support for the pair stands at 1.2835 the 50-day moving average.More content