Pre-election pound game. GBP / USD pair analysis.

The pound is gaining 5. another day in relation to the dollar and after rising above 1,3130, it is the strongest since May 6 this year. The GBP / USD increase observed this week is not surprising technical analysis. According to earlier suggestions, the rate hit the mountain from the downward channel drawn from the third decade of October, which included a correction of increases of the pair initiated at the beginning of September. The upper limit of this channel created resistance to 1,2955. Its breaking on Tuesday, which was quickly confirmed by breaking GBP / USD above October highs (1,3012), was a strong incentive for this pair's increases.

GBP / USD daily chart

Currently, the first target for demand is around 1,3180, which marks the minimum range of movement after breaking the top from the channel. There, however, the increases do not have to stop. Despite the persistent large buyout, which is indicated, among others, by RSI indicator, the rally may be stopped only by the March peak. It creates a resistance at 1,3380.

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On the basis of fundamental factors, in addition to the GBP / USD increase, there is, in addition to the recent USD weakness, the game for next week's accelerated results parliamentary elections in the United Kingdom. Markets are observing surveys that show the Conservative Party's considerable advantage, and assume relatively quick re-entry after Brexit elections. And that's all that matters now. Other factors, such as disappointing data from the British economy, are ignored. However, these factors will come back soon after the election or after the final closing of the Brexit topic. Then the pound may come under pressure again.