Hung parliament, Shmung parliament
All the hoopla about a hung parliament. UK voters got in the voting booths and could not press Lab. The GBPUSD rallied sharply - it really all happened at 5 PM when the first exit polls showed a strong Conservative showing. Now with Cameron back in charge and the US NFP out, the GBPUSD is finding it's groove.
What is the groove?
Technically, the upside took a peak above the April highs at 1.5497 and traded for about an hour above level before sliding back lower. The pair on the move higher could not get above the February high at 1.5551. The high price reached 1.5521 today.
The subsequent fall reached a low of 1.5353, shortly after the US employment report. The pair rallied back higher and has been able to stay above the 1.5392-1.54045 area. This area has been swing low and high area from April 29 to May 1. Watch this area for support. A move below should solicit more selling. On the topside the highs were also rejected (see topside yellow area). So there is some consolidation sparing being worked out in the pair.
Looking at the 5 minute chart, the price is/has been using the MA as topside resistance (see 100 and 200 bar MA on the 5 minute chart below). This gives the intraday trading nod to the bears at the moment. Stay below = bearish. Move above and the bullish bias reasserts itself.
