Pound Bulls Emboldened by Election Look Ahead to Key Milestone
- Sterling stays above $1.28 as weekly technicals point higher
- Bearish sentiment in options has eased since mid-January
Why the U.K. is Heading to the Polls… Again
The case for the pound to climb above the psychologically important level of $1.30 is strengthening, as technical indicators point toward an extension of its post-election announcement rally and bearish options bets lose traction.
Sterling’s move above $1.28 after Prime Minister Theresa May announced snap elections last week has proved more than a knee-jerk reaction, with the close last Friday above July’s low turning technicals bullish on the weekly charts. That hints at further gains for a currency that has struggled to mount a sustained recovery since its record tumble following the U.K.’s decision to exit the European Union last year. The pound hasn’t traded above $1.30 since Sept. 30.