If you are not sure, go to the safe place. UK election.
Often times before a key economic event or release, if the market is unsure, the buyers and sellers somehow get the price to a neutral area to ride out the storm. The tensions might increase as traders stare each other down, wait for headlines to give a push one way or another. It may look like it is making a break, only to return.
I look at the GBPUSD and see that.
The pair sits between the 100 and 200 hour MA (blue and green lines in the chart above). The 100 hour MA is at the 1.5174 area. The 200 hour MA is at the 1.5246 area. The low extended below that MA - falling to a low of 1.5164, but quickly rebounded. On the topside, traders for the most part, leaned against the 200 hour MA (green line). On the downside the 100 day MA looms not far away at the 1.51443 level.
The thoughts that Adam has expressed regarding the "doom and gloom" scenarios, may be the catalyst for a firmer ceiling, but as he points out as well, it is in their best interests for the politicians to figure something out. The UK will not disappear. So the advise is if you have the need to trade, take your time. Look for places to fade a move. The 100 hour MA would be a close place. The 100 day MA would be a more patient place. Define your risk though. You - and the rest of em - are probably looking for good/great trade location, but are likely not looking or expecting a home run.
PS The price is testing 100 hour MA now.
