GBP/USD: volatility still elevated in the wake of the UK election [Video]
|GBP/USD
With volatility still elevated in the wake of the UK election, sterling has yet to settle down. Cable added around +160 pips on Friday but the intraday volatility of moves meant that Cable had a daily range of 360 pips. Closing around the mid-point of the session will leave the bulls a little curious as there was a rejection for a close -190 pips off the day high. How the market responds today after a weekend of contemplation will be key as volatility begins to settle. Initial signs are positive still, with an early intraday gap higher and continued gains, leaving initial support at $1.3325/$1.3330. We see the medium term trend still higher into Q1 2020 and that weakness is a chance to buy to test around $1.3500 (Friday’s high was $1.3515). Momentum remains strongly positive, and given the near term volatility, there could be some opportunity to buy again. Support is key between $1.3000/$1.3050 with breakout support around $1.3175/$1.3230.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.