Easter usually comes to remind us for renewal of life,
hope, happiness and unwavering faith. What we felt so bright and joyful during
the holidays seems that didn’t brought enough excitement, comparing to the announcement of UK PM Theresa May earlier during the
day, calling for a snap election on June 8th.
A perceived risk of strengthening her
position during Brexit negotiations or this decision is a kind of reversal on
her previous stance, as she said she'd made it “reluctantly.”
However, today Mrs May turned to be a
genuine shakermaker on forex markets, triggering a sharp short-covering rally
across GBP crosses, lifting the major to 1.2840.
It was interesting to observe especially the Cable,
that has recovered from initial bearish positions and surged through the quite
important 200-day SMA for the first time since the historic Brexit vote in June
2016.
As seen on the daily chart, GBP/USD has pushed above
the recent downward trendline with technical indicators confirming
bullishness.
To confirm a sure bullish breakout, any pull-back most
likely will be limited and currently is going to find some fresh buying
interest around 1.2670-75 resistance break, which has now turned to be
immediate strong support. Any further slide below this point should now be
confined by the very important 200-day SMA at around 1.2630 area.
Less known fact is that the opening lines of the song
„Shakermarker” by Oasis, well known English rock band, were „I’d like to teach
the world to sing in perfect harmony”, but exactly this made them sued for
unlicensed use of the song, which was written and performed by New Seekers in
1971 and it was made famous in a Coke commercial. It’s strange how nowadays
this match to world’s harmony, unfair politics and perfection. „Irony”, was the
defence of Noel Gallaagher and after the loosing he joked „Now we all drink
Pepsi”. I wonder what drink would prefer Theresa May. Anyway, Sterling sang perfectly today.