GBP/USD continues consolidation on Election Day

<p>GBP/USD (daily chart shown below) has continued to consolidate in a relatively tight trading range on the day of UK elections. Currently trading just under […]</p>

GBP/USD (daily chart shown below) has continued to consolidate in a relatively tight trading range on the day of UK elections.

Currently trading just under 1.5250-area resistance, the currency pair is fluctuating squarely between the 200-day moving average to the upside and the 50-day moving average to the downside.

This consolidation occurs after a pullback over the past week from a two-month high around both the 1.5500 resistance area and the 200-day moving average.

2015-05-07-GBPUSD daily chart

 

The underlying trend continues to be bearish over the longer term despite the pronounced rebound and partial recovery in the second half of April.

In the short-term, as the elections play out on Thursday and in the upcoming days, if the current consolidation is broken to the downside the key price targets are at the 1.5000 and 1.4800 support levels. To the upside, any short-term advance should continue to be challenged by major resistance around the noted 1.5500 level.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.