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8 May 2015
GBP/USD drops to 1.54
FXStreet (Mumbai) - The GBP/USD fell to 1.54 levels after the Conservative majority was confirmed in the UK general elections held on Thursday.
Buy on rumor, Sell on news
The British Pound was bought aggressively post 10 pm UK time on Thursday, after the exit polls started suggesting a majority for Conservatives, an outcome that was a distant possibility. However, such an outcome was considered as a positive for the British Pound. Hence, the GBP/USD pair rallied to a high of 1.5521 on exit polls. As and how the Conservatives majority was confirmed, the pair was sold in a classic “Buy the rumor, Sell on fact trade”.
Investors now await the US non-farm payrolls data for the month of April, which is expected to show the US economy added 224K jobs.
GBP/USD Technical Levels
The immediate resistance is located at 1.5454 (200-DMA), above which gains could be extended to 1.5521. On the flip side, a break below 1.54 could drive the pair lower to 1.5327.
Buy on rumor, Sell on news
The British Pound was bought aggressively post 10 pm UK time on Thursday, after the exit polls started suggesting a majority for Conservatives, an outcome that was a distant possibility. However, such an outcome was considered as a positive for the British Pound. Hence, the GBP/USD pair rallied to a high of 1.5521 on exit polls. As and how the Conservatives majority was confirmed, the pair was sold in a classic “Buy the rumor, Sell on fact trade”.
Investors now await the US non-farm payrolls data for the month of April, which is expected to show the US economy added 224K jobs.
GBP/USD Technical Levels
The immediate resistance is located at 1.5454 (200-DMA), above which gains could be extended to 1.5521. On the flip side, a break below 1.54 could drive the pair lower to 1.5327.