GBP/USD - Key levels on GBPUSD - 07/05/2024 (GMT)

Technical Perspective:
Looking at the most recent price action, GBPUSD pared recent losses on the daily timeframe. The price is approaching the 1.2850 resistance zone, a swing high formed in March this year.

If GBPUSD sustains its bullish momentum within the ascending channel, it might rise further to retest the 1.2850 resistance. Beyond that, breaching above 1.2850 could prompt a further move towards 1.3000.

Conversely, a reversal below 1.2850 could drive prices lower, finding the channel's lower bound near 1.2550 as a potential support.


Fundamental Perspective:
The pound held steady, supported by exit polls projecting a decisive win for the Labour Party in the UK General Election. The Labour Party could secure a significant majority of 410 seats, ending the Conservatives' 14-year rule. Markets welcome this political shift, which enhances Britain's investment appeal and supports the pound's rally. However, expectations of a BoE rate cut in Aug as inflation eases might temper the pound's upward momentum.