GBP/USD hits fresh highs near 1.2900

The pound rose further against the US dollar after the beginning of the American session. GBP/USD printed a fresh daily high at 1.2887 and then pulled back modestly. At the moment is trading at 1.2870, up 35 pips for the day. 

Earlier today, the pair traded momentarily below 1.2800 but it managed to bounce to the upside, gaining momentum. Cable is rising for the second day in a row, recovering after losing more than a hundred pips on Friday. 

The pound continues to correct to the upside, but it is still facing pressure. Next week UK general elections could limit the upside for the pound and also is an important risk for the currency.

GBP/USD subject of Brexit and election's jitters

Regarding the US dollar, today’s US economic data showed an optimist income and spending report with inflation numbers moving to the downside. A key event will be on Friday, with the release of the US employment report. 

Technical levels 

To the upside, resistance levels might be located at 1.2900 (psychological), 1.2925 (May 24 low) and 1.2965 (May 22 low). On the downside, support could be seen at 1.2845 (May 29 high), 1.2790/95 (daily low) and 1.2775 (May 26 low).