GBP/USD extends gains to 1.2960 amid election speculation

GBP/USD extends gains to 1.2960 amid election speculation

18 Nov 2019 03:24 PM
 

GBP/USD is trading around 1.2950, extending its gains. The Conservatives have been extending their gains in polls. PM Johnson and opposition leader Corbyn will address a business conference today. The Relative Strength Index on the four-hour chart is well above 70 – indicating overbought conditions. Will GBP/USD fall? Other indicators are positive – momentum is to the upside and sterling trades above the 50, 100, 200 Simple Moving Averages.  Overall, a downside correction may be expected, but GBP/USD still has room to extend its gains afterward. Resistance awaits at 1.2980, which was the high point at the end of October. It is followed by 1.3013, the peak of October and the highest in six months. Further above, 1.3045, 1.3080, and 1.3175 – all dating back to the spring – are eyed.

Some support awaits at 1.2950, which capped the pound in early November. It is followed by 1.2900, a swing high from last week, and then by 1.2820 and 1.2760.

 

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