Shakermaker

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.