GBP/USD daily outlook

I'm expecting a bullish move to pre-election levels.

The GBPUSD fell to a 7-week low last week after UK exit poll result indicated a potential hung parliament, bottomed at 1.2635 but closed higher at 1.2743. From a 4H chart perspective as you can see on my H4 chart below, we have a pin bar formed after slipped below 1.2670 support area suggests a potential bullish pressure especially if price able to make a clear break and daily close back above 1.2780 testing 1.2900 region. On the downside, a clear break and daily close below 1.2670/35 would expose 1.2500 region.

Initial target is 1,2515 or even 1,2350

Pound seems stabilise around 1.274 level after sharp drop from Friday, but with political uncertainty and the UK's weaken position in soon-to-start Brexit negotiation, the pair will likely to continue its downward trend.

After having founding strong support near 1.2710 levels, the GBP/USD pair regained poise in the Asian trades, now accelerating the gain towards the next key resistance located at 1.2780, as dust settles over the UK general election aftermath.

The spot is back on the bids, despite mixed market sentiment and rallying treasury yields, as the GBP bulls make another attempt to take on the recovery from seven-week lows of 1.2632, in a bid to regain 1.28 handle.

For now GBP/USD remains very bearish and it will likely test once again the last low it reached after the election at 1.2634.

My only concern right now is how low can GBP/USD reach?

Both the US and UK seems to have their own fair share of political problems that moves the market.

GBP/USD did retest the support at 1.2634 and formed a double bottom at that level before bouncing off from it. Next target is likely at 1.2750 - 1.2760.

Tomorrows big mover is the Fed, especially the tone of future ratehikes, followed by BoE the day after, the pair can fly any direction based on these two events.

The pair is back to 1.2730/40 zone after UK's jobless rate stay unchanged, risk remains on the downside. 1.263 act as next support level, break below could lead to further decline.

GBP/USD looks bullish, maybe the US dollar will depreciate after the news release at 2PM EST.

GBP/USD is choppy in my opinion. Not until Tories strikes a deal with GUP.

The GBPUSD had another indecisive movement yesterday. The bias remains neutral in nearest term. The bullish pin bar appeared on H4 chart on June 9th remains valid but need a clear break above 1.2780 to confirm the bullish scenario targeting 1.2900 – 1.3000/50 region. Immediate support is seen around 1.2725. A clear break below that area could trigger further bearish pressure but only a clear break below 1.2635 would nullify the bullish pin bar scenario targeting 1.2500 region.

The British pound recorded a volatile session against the US dollar on Thursday. The currency pair opened at 1.2750 and added only 4 pips. Daily extreme values ​​were reached at 1.2690 and 1.2794 respectively. The outlook remains neutral, with the 1.2700 and 1.3090 levels retaining a key role in the short term.

Pound / dollar had another unsettling movement yesterday. Trade signals remain neutral in the near future. The upcoming pin bar, which appeared on June 9, remains valid, but a clear break above 1.2780 is needed to confirm the bullish scenario with targets to 1.2900 - 1.3000 / 50. Immediate support is seen at 1.2725, whose breakthrough can lead to future downward pressure. But only a clear break below 1.2634 will cancel the upside-down scenario on the pin bar, with the first downside target in the 1.2500 area.

Key levels to watch for:
Support: 1.2700; 1.2516; 1.2360;
Resistance: 1.3090; 1.3270.

The British pound was up against the US dollar on Friday. By the close of US trading, GBP/USD was trading at 1.2782, adding 0.20%. I believe that support is now at around 1.2636, Monday's low, and resistance is likely at 1.2818, the maximum of Wednesday.

A small gap down in H4 chart ahead of Brexit negotiation.

GBP/USD is consolidating above the support at 1.2760. A breakout below that level will likely lead to a further move to the downside towards the previous low at 1.2690.