From the 4hourly perspective of GBPUSD we’ve seen price return to the 1.2750 key level in line with a test of the exponential moving average. After slight hesitation last night, the current candle has exploded through this level to test 1.2845 resistance. A strong break above this level would see price initiate a new bullish leg towards 1.2945 initially. Alternatively, should price remain below the 1.2845 level then we could see continued consolidation within this current range.
For now GBPUSD continues to trade within a consolidation range and while the bulls have done well to carry the market back towards the 1.2845 resistance level, it’s unlikely that strength will be maintained for extensive periods of time before there is more clarity given through the House of Commons debate (11th Dec).