Sterling had fallen earlier in the day on news of a hung parliament after a poll showed Tories’ lead was reduced. A stronger than expected UK PMI helped to strengthen the pound and price has continued higher. It is now near to the downtrend line. A break of 1.2940 would be bullish for Sterling and call for a move to test the high at 1.3015 again.
On the hourly chart, both Stochastic and MACD are moving higher. Stochastic has a bullish crossover and is rising but is still only in the middle of its range. MACD has turned bullish and is rising. Both should be able to support a price rally to 1.3015. A movement below 1.2895 would negate our bullish view.