GBP: More Short Covering On UK Snap Election To Bring 1.3445 In Focus

Theresa May’s snap decision to call a snap election sent the pound higher. Here are our five reasons why the pound is rising. What targets should we look out for?

Here is their view, courtesy of eFXnews:

NAB FX Strategy Research notes that the GBP has stages a significant rally in reaction to UK Prime Minister Theresa May’s calling for a snap General Election on June 8th 2017.

In that regard, NAB notes the GBP/USD exchange rate has broken its 200 day moving average for the first time since the day of the referendum on June 23rd last yea making a fresh high for 2017 and stands at its highest level since December 6th when it hit a best of 1.2775.

“Given the significantly more positive technical picture and the wholly unexpected nature of the June 8th General Election,there is clearly scope for a great deal further short-covering and a break of USD1.2775 would bring the September high of 1.3445 into focus,” NAB argues.

GBP/USD is trading circa 1.2760 as of writing.