The pound sterling continued to advance gains, rising to a seven month high on Wednesday. The currency picked up momentum after latest polls put the Conservative party in the lead. Besides leading the polls, the rally comes as investors hope that PM Johnson’s party will win a majority. This is expected to pave way for a Brexit deal which is due for review by January 31, 2020.
GBP/USD at 7-month High But at Risk of a Pullback
The cable managed to post strong gains as it broke past the resistance level of 1.2960. The clear breakout above this level indicates further upside. But there is a risk that the currency pair could be looking to retrace the gains. A retest of the 1.2960 level to establish support will see price action establishing itself toward further gains. For the moment, the price level of 1.3100 could be holding out as resistance.
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