GBP/USD plummets after election results

Source: Dukascopy Bank SA

Positions Today Yesterday % Change
Longs 57% 53% 7.02%
Shorts 43% 47% -9.30%
Indicator 4H 1D 1W
MACD (12; 26; 9) Sell Buy Buy
RSI (14) Buy Neutral Neutral
Stochastic (5; 3; 3) Sell Buy Sell
Alligator (13; 8; 5) Sell Neutral Buy
SAR (0.02; 0.2) Sell Buy Buy
Aggregate

The UK Parliamentary Election results had a devastating effect on the Pound, causing it to trim all previous month's gains against the Buck. Even though the bearish momentum should now persist, the Sterling still has a chance to undergo a corrective recovery. The RSI indicator is near its lower border, which suggests the bullish trend is about to return. However, no solid supports are present to help achieve this goal, the only nearest one being the monthly S1 at 1.2624. On a larger scale the bearish development is not a surprise, as the breach of the wedge's support line was anticipated. In case losses do continue to take place, a solid turnaround points are around 1.26 and 1.2550.

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