GBP/USD deflates from 1.2900, back near 1.2830
After clinching fresh 6-month tops just above 1.2900 the figure on Tuesday, GBP/USD has surrendered some of those gains and is now situated near 1.2830.
GBP/USD boosted by May’s statement
The pair gained around 4 cents, or more than 2%, on Tuesday after UK’s PM Theresa May called for early elections on June 8th. The news caught markets off guard, prompting buyers to rush into GBP while pushing spot to levels last seen in early October 2016 in the 1.2900 neighbourhood.
The renewed bid tone around the greenback motivated Cable to ease some ground after yesterday’s rally, deflating to the current 1.2830 area.
Nothing worth mentioning data wise in the UK today, while crude oil inventories by the EIA is due in the US docket seconded by the speech by Boston Fed E.Rosengren (2019 voter, hawkish) and the Fed's Beige Book.
GBP/USD levels to consider
As of writing the pair is losing 0.09% at 1.2830 and a break below 1.2623 (200-day sma) would expose 1.2521 (20-day sma) and finally 1.2513 (low Apr.18). On the upside, the next hurdle lines up at 1.2904 (high Apr.18) followed by 1.3125 (high Sep.22 2016) and then 1.3279 (high Sep.15).