GBPUSD guided by politics, may probe towards 1.2850 – OCBC Bank

In view of Emmanuel Ng, Research Analyst at OCBC Bank, GBP has been additionally weighed by an opinion poll showing PM May’s Conservatives dropping another one percentage point on the week (down 5% from two weeks ago) to 43%-35% (Labor) ahead of the national election.

Key Quotes

“Short term implied valuations are at risk of topping out further at this juncture with the GBP-USD likely to continue to inhabit the lower end of its confidence intervals. Risk to probe towards 1.2850 cannot be discounted at this juncture after repeated failures to overcome 1.3000 on a sustained basis.”