GBP/USD - Soared Almost 400 Pips in One Day - Profit Booked at 1.2700! - 04/19/2017 (GMT)

Sterling had an aggressive bullish run against the greenback yesterday as the British pound dominated the market thanks to U.K. Prime Minister May who shocked the investors by calling a snap election in June. The GBP/USD pair advanced to a fresh six-month high and tested the 1.2900 strong psychological level. Also, the cable surged more than 2% in just one daily session and broke to the upside the medium-term trading range with lower boundary the 1.1978 and upper boundary the 1.2700 key level.

It is worth mentioning that the pair managed to reach our suggested target with profit more than 130 pips at 1.2700 and surpassed it easily (see technical analysis here: http://bit.ly/2pQnhWq). The next immediate resistance to watch is the 1.2920 barrier and then there is no obstacle until the 1.3050 handle. On the daily chart, the price jumped above the three simple moving averages while it rebounded on the 200-SMA and climbed almost 400 pips. Going to the 4-hour chart, the technical indicators seem to be in contrast, however, both are moving in the overbought area. The MACD oscillator is holding above its trigger line with strong momentum whilst the RSI indicator is sloping to the upside signaling a possible correction until the 1.2780 support level.