Not only did the rally on Monday cause the two-week down-trend to be pierced, but also help the Cable stabilise above the monthly pivot point. Nevertheless, the GBP/USD pair could still fall under the 1.29 mark in order to retest the up-trend, where the bullish momentum is expected to be reacquired. As a result, a bearish correction today would not be a surprise, but losses are unlikely to exceed yesterday’s gains. Overall, technical indicators support the possibility of the bullish trend lasting through the week, at least from the technical perspective. Other factors, such as the elections in the UK on Thursday are also likely to have a serious impact on the Cable’s exchange rate, with risks skewed to the downside, as it would confirm the rising wedge’s end.
