GBP/USD has showed a good amount bullish pressure today after UK Prime Minister May spoke about a snap election in June, a future trade deal with the EU and possible positive impact on the GBP. Today, first-tier news like Building Permits did not have any positive impact on USD though the news was a bit better than expected at 1.26M which was expected to be at 1.25M. Housing Starts report was decreased to 1.22M which was expected to be at 1.25M. US Capacity Utilization Rate was also showed a lower percentage of 76.1% which was expected to be at 76.3%. US Industrial Production came in as expected at 0.5%. Overall, USD did not have any positive news to dominate GBP after the prime the minister's speech. Amid the Brexit procedure, GBP has showed a notable bullish move to break above the range resistance of 1.2800. Currently, GBP has established the bullish foundation in the market and GBP dynamic is expected to remain bullish in the short term.
Now let us look at the GBP/USD pair from the technical view. The price has just broken above the corrective structure resistance of 1.2800. If we see a daily close above this level, then we will be looking forward for a retest of the 1.2800 level as support before planning short positions with a target towards 1.3370. On the other hand, if the price closes below the support of 1.2800 with a daily close, then we will consider selling towards 1.2550 as our recent target.
