GBP/USD still on the front foot as the nation decides

Yesterday the break above 1.2710 in the GBP/USD did as expected and did extend. Of course that extension was greatly assisted by the crummy US data, but it was already on the rise, before that data sent it to a high at 1.2777. The Pound later edged back, as the dollar rebounded and closed in the US last night at 1.2742. It has not strayed too far from that close so far today as the UK heads to the polls for the General Election. By all things equal it looks like it will be a return to power for the Labour party and it is surely only a matter of how decisive that victory will be and not whether it will happen at all. The prospect of that has not daunted the currency at all and it probably will not either. The acid test on that will come several months down the road and the markets will probably give the new administration every opportunity to make a mess of things, before any reaction unfolds. So, the Pound is steady so far today and has traded a range covered by 1.2741 to 1.2759. The upside looks vogue right now though and the dollar is integral to that, especially if it weakens further in the coming days. The GBP/USD is currently trading at 1.2746