GBPUSD Fundamental/Technical setup

FX:GBPUSD   British Pound / U.S. Dollar
Having broken through the previous 1.22 - 1.26 range off the back of the general election announcement, GBPUSD appears to have established a new range between support at previous resistance (1.26) and new resistance at 1.3
the 1.3 level has now been tested for a third time, with what appears to be a false break earlier this month. News tomorrow supporting the British economy could well lead us into a new range between 1.3, and 1.33, particularly considering the low likelihood of a fed decision to increase interest rates across the pond. In spite of these possible results, the more likely outcome is for the Cable to maintain its current range, particularly considering the IMF's recent decision to downgrade projected UK growth from 2.0 to 1.7% for the coming year.
I will therefore wait for the result of the economic releases from the UK tomorrow, and set a Short entry at 1.3, with a TP at 1.265 towards the bottom of the predicted range, and the SL at 1.315, just above the most recent false BO.
Good Luck!
Comment: Given the weaker than expected Jobless data coming out of the US last week, and neutral releases for the UK, GBPUSD appears to be establishing a higher range for the time being, likely rebounding from resistance at 1.33. This however could well be a short-lived retrace, if indeed it does occur, as there is little optimism in the outlook for the Greenback, and a lot of 'fresh air' north of 1.33, with next serious resistance at 1.41. I will look for buying opportunities on a near-term retrace, and amend my initial neutral outlook to a more bullish sentiment.
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