The GBP/USD spiked heavily after UK PM Theresa May called for snap UK elections on June 8. UK PM May stated that these elections might further instill the stability in UK and would provide stability for longer period. Traders favored UK PM’s reasoning and the GBP flew off above weekly resistance levels.
The pair has formed a bullish pennant that might provide a further breakout to the upside above 1.2855 targeting 1.2907 and 1.2946. In case of retracement, technically the POC comes within 1.2735-60 (ATR low, W H5, D H3) and rejection should target 1.2835 and 1.2855 with the possible breakout as mentioned above.
D L3 – Daily Camarilla Pivot (Daily Interim Support)
D H3 – Daily Camarilla Pivot (Daily Interim Resistance)
D H4 – Daily Camarilla Pivot (Strong Daily Resistance)
D L4 – Daily Camarilla Pivot (Very Strong Daily Support)
D L5 – Daily Camarilla Pivot (Strongest Daily Support)
W H5 – Weekly H4 Camarilla (Strongest Weekly Resistance)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
