FXStreet – The GBP/USD has been with the European opening, heavily sold, and so the pound fell with the risk aversion to 1,2950, before a recovery to 1,30 been initiated.
The recovery of the pair goes hand in hand with the increasing optimism in the European equity markets, while on the financial markets of the dust of the terrorist attack in Manchester. The better-than-expected UK public sector borrowing provides the GBP bulls.
The Net borrowing of the public sector was 9,648 billion GBP over the forecast of 8.15 billion GBP.
The uncertainty prior to the General elections in the United Kingdom on the 8. June is increasing, as the UK PM Theresa May stopped the campaign after the terrorist attack.
The focus is now on the UK hearing on the inflation report and the US data.
GBP/USD to test levels
The FXStreet Analyst Haresh Menghani says: “Under the 1,2965 support an acceleration of the downward movement is likely. The rising trend-line support extending egg 1,2920. This is broken in the game space increases in the direction of the 1,2850-45, 1,2800 and 1,2770-65. On the other hand, Resistances can be found at 1,3040-50, 1,3100, 1,3125-30 (38,2% Fibo).”
• Expiring FX options of today’s NY trading
** FXStreet News Editorial, FXStreet**