GBP/USD: what's next?
Market stress from the UK parliamentary election turned to be much lower, then most of the traders and analysts expected. Conservative party easily gained the majority and doesn’t need to form a coalition. Political stability returned into the United Kingdom.
The cable soared towards the 1.5500 mark right after the election, but once again faced resistance here. Strong US NFP on Friday anchored a further rally. We remain bearish below 1.5550 as in the current conditions there is a chance for a USD rally resumption. We’ll watch the US economic data. As for the UK releases, the schedule is rich: BOE meeting, manufacturing figures, labor market data and the BOE inflation report.