7 May 2015
GBP/USD likely to see wild moves today – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, shares the technical outlook and key levels for GBP/USD, further noting that wild moves might be expected today.
Key Quotes
“The Implied volatility of the GBP pair is on the rise as the markets brace up for the general elections in the UK. Contrary to widespread belief, the GBP remained resilient in the run up to elections, despite the high probability of a hung parliament indicated by the opinion polls.”
“The currency pair is likely to see wild moves once the polls close at 10pm local time. A hung parliament is a widely expected to outcome and could lead to a sharp drop in the GBP/USD pair.”
“The only GBP supportive outcome would be a convincing win for conservatives, which could see a 200-300 pip up move in the pair.”
“At the moment, the pair is trading at 1.5237. The technical studies are likely to be overshadowed by the Election event. Hence, investors would do better by simply noting down major support/resistance and Fibonacci levels.”
“A strong resistance is seen at 1.5272 (23.6% Fib of 1.4564-1.5490), followed by 1.5290. The next major hurdle is seen at the 200-DMA located at 1.5458.”
“On the other hand, immediate support is seen at 10-DMA currently located at 1.5240, followed by 1.5136 (38.2% Fib of 1.4564-1.5490), 1.5088 and 1.5027 (50% Fib of 1.4564-1.5490).”
Key Quotes
“The Implied volatility of the GBP pair is on the rise as the markets brace up for the general elections in the UK. Contrary to widespread belief, the GBP remained resilient in the run up to elections, despite the high probability of a hung parliament indicated by the opinion polls.”
“The currency pair is likely to see wild moves once the polls close at 10pm local time. A hung parliament is a widely expected to outcome and could lead to a sharp drop in the GBP/USD pair.”
“The only GBP supportive outcome would be a convincing win for conservatives, which could see a 200-300 pip up move in the pair.”
“At the moment, the pair is trading at 1.5237. The technical studies are likely to be overshadowed by the Election event. Hence, investors would do better by simply noting down major support/resistance and Fibonacci levels.”
“A strong resistance is seen at 1.5272 (23.6% Fib of 1.4564-1.5490), followed by 1.5290. The next major hurdle is seen at the 200-DMA located at 1.5458.”
“On the other hand, immediate support is seen at 10-DMA currently located at 1.5240, followed by 1.5136 (38.2% Fib of 1.4564-1.5490), 1.5088 and 1.5027 (50% Fib of 1.4564-1.5490).”