Holds 61.8 Retracement on the move higher

The EURGBP surged on the back of the exit results and on the spike higher, stalled a few pips short of the 61.8% of the move down from the October 2016 high to the December 2016 low (the low in April and 2017 low was just above the December 2016 low). That retracement level comes in at 0.8823 (see daily chart below). The high reached 0.88215. That peak occurred in the first 5 minute bar after the exit poll estimate of 314 seats.

Drilling to the 5- minute chart to look at the price action of the spike higher, the price of the pair has been moving up and down, with the price staying in the top half of the price range today. That 50% level comes in at 0.87349. The lowest corrective low came in at 0.87334 - just a pip and 1/2 away from the 50% level (see 5-minute chart below).

In between those two extremes sits a swing level from the daily chart that is between 0.8766 and 0.8786 (see the yellow area in the chart above). The price has traded above and below that area as the trading ping pongs up and down.

What next?

Crazy things happen on election nights and the aftermath. However, the pair is neatly trading between support at the 50% midpoint of the day's trading range (at 0.87349, AND the 61.8% off the daily chart (at 0.88232). The spread between the two is 87 pips so it is wide, but those levels represent the ceiling and the floor. They also can be risk levels for shorts and longs. Traders looking for more ping ponging may use those extremes to sell high and buy low (with stops on a break).

In between those two extremes, traders may use the 0.8766-86 levels for additional bias clues. If it moves above, it is more bullish. If it moves below look for further downside.

SUMMARY: Overall, the buyers hold more of the bias and control. The 50% of the range has held support, the price is higher. However is the pair running away? Not really. The 61.8% retracement stalled the rally and the price has also not been able to take out the January 2017 high at 0.8815. If long, watch 0.8766 for close clues. Off the 5-minute chart the pair may be trying to base against that level. If it can hold, there could be another push toward 0.8800 and then the 0.8823 high resistance target.

Crazy things happen on election days and the aftermath. Lean against levels like those outlined above, but don't let the trade get away if wrong.