GBP/USD: General election set for 12 December, it’s about the dollar now
With elections set for December 12th, focus now shifts to the US dollar, as breakouts likelier on expected increased volatility.
GBP/USD Technical analysis, overview, strategies, and levels
The pound remained relatively within narrow ranges as low-impacting UK data wasn't that far off expectations, and despite the announcement that parliament voted in favor of a December 12 general election. However, the USD aspect of this pair is set to get affected by the string of significant US data and its central bank policy announcement, and with this pair too technicals that have been more positive as of late will matter less. Markets are already pricing in a 0.25% rate cut, and hence should that not occur or the US Federal Reserve Chairman Powell sound more optimistic and offer guidance on the future course of monetary policy and the dollar could regain its footing, even against a pound that has benefitted from reduced no-deal Brexit likelihoods.
| Current Technical Overview | Consolidation - Positive Bias |
| Technical Overview Conformist Strategies | Sell 1st Resistance After Reversal, Buy 1st Support At/Before Price |
| Technical Overview Contrarian Strategies | Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above |
| S/L for 2nd Resistance | 1.3051 |
| 2nd Resistance | 1.3014 |
| S/L for 1st Resistance | 1.2977 |
| 1st Resistance | 1.2940 |
| Relative Starting Point | 1.2866 |
| 1st Support | 1.2792 |
| S/L for 1st Support | 1.2755 |
| 2nd Support | 1.2718 |
| S/L for 2nd Support | 1.2681 |
IG client and CoT sentiment for GBP/USD
Majority long retail bias is up a few percent to 59% anticipating further gains, opposite institutional bias that although has dropped 8% since the week before remains in heavy short territory at 71%.
GBP/USD Chart with retail and institutional sentiment
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