GBP/USD rallies to six-week tops, back closer to 1.30 handle

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  • The latest UK election poll showed increasing support for Conservatives.
  • A subdued USD demand remained supportive of the positive momentum.

The GBP/USD pair jumped to six-week tops in the last hour, with bulls now looking to extend the momentum further towards reclaiming the key 1.30 psychological mark.

The pair added to the previous session’s intraday uptick and the buying interest picked some additional pace during the early European session on Tuesday in reaction to the latest UK election poll.

Focus remains on UK politics

A survey conducted by Kantar showed this Tuesday that support for Prime Minister Boris Johnson’s Conservatives rose by 1 point to 44%, widening the gap over the Labor Party to 12 points.

Going into next week’s general election, the general lead in favour of the Conservatives was seen as one of the key factors underpinning the sterling and driving the pair higher on Tuesday.

This coupled with a subdued US dollar demand, weighed down by persistent trade uncertainties and Monday’s disappointing US ISM Manufacturing PMI, remained supportive.

With the UK political headlines turning out to be an exclusive driver of the pair’s momentum, Tuesday’s release of the UK Construction PMI is unlikely to provide any meaningful impetus.

Technical levels to watch

 

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