What is Next for the GBP?

Theresa May seeks earlier general elections in UK. The plan is to have them on the 8^th of June. The comeback from the Easter holidays is eventful. News from London strongly influences pairs with the GBP. GBP/JPY – well known from its volatility is up already by 200 pips (from the daily lows).

GBP/USD escapes from the symmetric triangle formation. We were anticipating that for some time. The bullish movement gains momentum because it is additionally supported by the stop loss orders from the short side of the market. Sentiment is positive and the first target for this upswing is still 100 pips higher – around the 1.278.

EUR/GBP crashes through a crucial long-term support created by the lower line of the triangle and the up trendline. If the price will close the day below that area, we will have a legitimate long-term sell signal.

GBP/CAD finally adds something positive to the bullish engulfing created on a weekly chart at the beginning of the year. Most of the local resistances are broken and the closest important resistance is 500 higher. That is a good information for potential buyers.