GBP/USD shocked lower but respecting ranges – levels

UK exit polls showed a hung parliament[1] with only 314 seats for the Conservatives and high uncertainty all in allץ 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?[2] 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[3]

Get the 5 most predictable currency pairs[4]

from Forex Crunch http://feedproxy.google.com/~r/ForexCrunch/~3/EiEgjMVXt4o/

from Online Forex Trading Resource
View thesource article here

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