Stay Away from British Pound Trading During UK Elections

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Stay Away from British Pound Trading During UK Elections

11:00 AM (EST) Update

GBP/USD Daily: Testing 61% Fibonacci  with RSI Heading Down

Risky Event: Britain Elections with polling stations across the UK opened up at opened at 07:00 BST, which will remain open until 22:00 BST. Extreme volatility expected. The lack of a clear winner could push Mr. British Pound down.

Neither the Conservative nor Labor party has pulled away in the pre-election polls and the results – due Friday morning – are expected to deliver a hung parliament with days, or even weeks, of deal-making likely to follow.

Trading Idea

Long Term Technical Analysis: The pair was held below our resistance level of 1.5450 and dived down end of last week towards Ichimoku cloud, just to be held above it on Tuesday. Currently the pair is showing indecisive movements right above 61% Fibonacci level with a new bearish sentiment upon London market open on Thursday. A break below this level as well as Ichimoku could push the pair down all the way towards 50% Fibonacci at 1.50 and beyond. The RSI is heading down

Alternative Scenario: Above 1.5160 look for further upside towards 1.5450

Where to set your stops and limits:

Support Levels Turning Point Resistance Levels
1.4800 1.5050 1.5160
1.4620 1.4935 1.5450