The GBP/USD spiked heavily after UK PM Theresa May called for snap UK elections on June 8. UK PM May stated that these elections might further instill the stability in UK and would provide stability for longer period. Traders favored UK PM’s reasoning and the GBP flew off above weekly resistance levels.
The pair has formed a bullish pennant that might provide a further breakout to the upside above 1.2855 targeting 1.2907 and 1.2946. In the case of retracement, technically the POC comes within 1.2735-60 (ATR low, W H5, D H3) and rejection should target 1.2835 and 1.2855 with the possible breakout as mentioned above.
GBPUSD Hourly Chart