GBP/USD: volatility still elevated in the wake of the UK election [Video]

Richard Perry Independent Analyst

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.

Author

Richard Perry

Independent Analyst

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