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Buy opportunity on GBP/USD? 3 reasons

UK exit polls are shocking  by  showing no absolute majority for the Conservatives in an election that was supposed to be a landslide.  While polls narrowed towards the vote, they still showed a healthy lead for PM Theresa May.

GBP/USD is crashing nearly 2% to the 1.27 handle. However, this may be a buying opportunity. Here are three reasons for this idea. What do you think?

  1. Trading volume is thin: So, the reaction is exaggerated. Tokyo opens at 00:00 GMT and perhaps we will see a better reaction, for good or for bad.
  2. Exit polls underestimate the Tories: Real results could put them at 326 or higher.  In 2015, polls gave CON a smaller majority than what actually happened.
  3. A coalition could lead to a softer Brexit, especially if the Lib Dems are inside.The small party  were 100% pro remain and campaigned for a soft Brexit. A softer Brexit means a better trade deal with the EU.

UK elections – all the updates in one place

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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.