GBPUSD was last trading around 1.2865, just above the important support at 1.2840, a break below which would result in a reversal of the short-term trend downward. Investor reactions to the latest terror incident at a popular London nightlife spot is muted, as they await the results of a new opinion poll that could point to a further narrowing of the gap between the ruling Conservative and the opposition Labour Party.
The third terror attack in the UK in a span of three months has eroded incumbent Prime Minister Theresa May’s popularity notably, potentially resulting in an election day upset. If either party fails to secure an outright victory, it would create huge uncertainty just weeks before “Brexit” negotiations are scheduled to begin. Given the heightened risk environment, investors are more than likely to sit on the sidelines until the June 8th elections have concluded, potentially keeping the Pound trending horizontally.
Pound Holds Above Support
Daily Analysis - 05/06/2017