Tests the 61.8% of the move down from the 2018 high
The exit polls strong enough to target a Conservative majority. Good news for the GBPUSD.
The price has already shot above the upside targets starting with the:
- The December high at 1.3228
- The September 2018 swing high at 1.3298. That is also near the natural level at 1.3300
- The 2019 high price at 1.33795, and finally the
- 61.8% retracement level of the move down from the 2018 high at 1.34524
The high price extended up to 1.3468, and rotated back down to 1.3408.
However the price has since moved back higher and we currently trade just off the highs of the day (well just made a new high of 1.3475).
What now?
If you want to keep things simple the barometer for the bulls and bears now is the 61.8% retracement at 1.34524. The corrective low after the initial spike high was just above the 1.3400 level. I would use that 1.3400 as a support level. Stay above and the bulls remain in control. If you want to be more conservative you can use the 2019 high price of 1.33795 (the yellow area in the chart above).
It just makes sense that if there will be a smooth Brexit, that the high from 2019 when the uncertainty was higher, would now be a support level.
On the topside , if the price starts to move above the 1.3500 level, I would increase the bullish barometer risk level to the 1.34524 level (the 61.8%).
Other technical target levels on the daily chart would include the:
- 1.36177 level. That is the high price going back to May 2018.
- Above that is the 38.2% retracement of the move down from the 2014 high to the 2016 low. That level comes in at 1.37632
We don't know what may happen but the buyers entered with a vengeance and are pushing the pair sharply higher
