The pound took out not one, not two but three big figures today in the wake of a surprise announcement that Theresa May will call a snap election on June 8th. The news was met with resounding approval from the currency market as traders appreciated the shrewdness of the move which could consolidate Ms. May’s power and allow her unbridled power to negotiate the terms of Brexit.
The move by cable wiped out many long-standing shorts and is likely to extend further challenging the key 1.3000 level over the near term horizon. For now, the pair sees support at 1.2600 and resistance at the 1.3000 level with a decidedly upward bias.
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