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GBP/USD shocked lower but respecting ranges – levels

UK exit polls showed a hung parliament with only 314 seats for the Conservatives and high uncertainty all in all×¥  We don ´t know if the Tories will eventually reach a small majority, if their position will further deteriorate and May resigns, or if uncertainty prevails.

The response in  the pound was loud and clear: a crash of nearly 250 pips to a low of 1.2713. Yet after the initial fall, we can see that the pair respected the old range of 1.27 to 1.2770.

Is it a buying opportunity? In any case, here are the levels to watch:

1.27 is the immediate  line of support after it worked as resistance back in February. Further support awaits at the March high of 1.2615.

Further support is at 1.2350, followed by 1.2215. These levels assume total chaos.

Looking up, we find 1.2770, which held the pair from falling in recent week as immediate  resistance. It is followed by 1.2840, 1.29, 1.2980 and 1.3050, all levels were seen in recent weeks.

UK elections – all the updates in one place

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.