Pound continues its march
There's nothing like a good old tree shake to clear the loose leaves.
1.2700 is the near target now, a level last seen back in early Feb, and prior to that, in mid-Dec.
GBPUSD H4 chart
The 1.2700/15 & 1.2735/45 area looks quite strong on the charts and it's an area we haven't managed to keep above. It's a bit like the 1.0800/30 area in EURUSD. If we do have a go at it, it will be a very good test for this election news rally and a failure to break it will probably see the rally fade back. As it is we're already finding a top at the 1.2679 highs.
The 200 DMA at 1.2623 has been breached for the first time since the middle of last year so buyers will want to see it act as support should we fall back from here. If the pound does break back below, it's likely to be the nail ion the coffin for this rally.
I still don't believe that this rally is justified on the news today so I'll have a short play if we do test 1.2695/1.2700.
There's going to be plenty of reaction to the election news so expect some choppy trading over the next few session at least.
