GBP/USD: Britons reject Hard Brexit, poised to rally towards 1.2900?

The GBP bulls are gearing up for a rally back towards 1.29 handle, as markets eagerly await the final outcome of the UK snap election, with the exit polls widely suggesting a hung parliament, as Conservatives fall short of a majority.

GBP/USD looks to close bearish opening gap

The spot is making another attempt to fill in the bearish gap witnessed at the Asian opening trades, after the pound was dumped on the incoming exit that indicated the UK PM May’s Conservatives Party is on the losing-end.

Over the last hour, with the final outcome anytime soon, Britons appear to have found renewed optimism amid Labour Party’s Corbyn outperforming Conservatives, only shows the rejection of PM May’s ‘Hard Brexit’ stance.

The UK could probably see a new PMI and a softer approach towards the Brexit deal, which is likely to be a big positive for the GBP. BBC officially calls UK election result Hung parliament.

The pair could regain momentum on the final outcome, which could generate volatility back into the markets, also as the European trading gets underway. Focus now shifts towards the UK industrial and trade figures due later in the session ahead, which could provide fresh incentives on the prices.

GBP/USD Levels to consider            

Omkar Godbole, Analyst at FXStreet noted: “The key resistance levels are - 1.2790 (38.2% Fib), 1.2820 (50% Fib), 1.2885 (10-DMA). The key support levels are - 1.2753 (23.6% Fib), 1.2692 (session low), 1.2586 (100-DMA).”