GBP/USD Technical Analysis: Breakout
by, 04-20-2017 at 03:12 PM (156 Views)
Prime Minister Theresa May announced that general elections would be held early, on June 8th of this year. The move was largely applauded as cogent political strategy in the effort of gaining a Conservative super majority to push through Brexit negotiations. And this very much may be the case; but given the volatility seen in global elections over the past year, it would seem that a bit of reservation should be due before any long-term prognostications are built based on early polling numbers.
The immediate impact to the British Pound was a quick run of strength that finally sent price action above the 1.2775-level. Prices continued to run in a rather aggressive fashion, all the way up to 1.2903 before sellers came-in. This led many outlets to claim that PM May’s announcement was a ‘game-changer’; and again, this very much may be the case but for traders putting money on the line, this is a leap-of-faith that shouldn’t yet be initiated until more information presents itself.