The pound sterling was perched at a six-month high ahead of the parliamentary elections this week. Polling is set to start on 12 th December and is expected to continue throughout the day.
The Conservative party remains the firm favorites at the moment. However, the Labor party is catching up. PM Johnson hopes for a majority win in order to proceed with the Brexit plans.
GBP/USD Rally is Likely Overdone
The cable was seen trading flat as it attempted once again to break past the previous highs at 1.3160. Prices have been rejected at this level. If this continues, we expect the GBPUSD to likely stall at this level. The short term support is at 1.3100. If price breaks below this level, we expect GBPUSD to correct to 12960.
