GBP/USD - Short zone and election dillemas
GBP/USD has now swung up to and is testing the .500 fib for the second time in 2 weeks. This is also just above the 1.500 level which is a strong psychological number.
We had a false break of this level in March following a news release. Price may sell off from this point, although we could see a test of the .618 fib level.
With the elections coming up in less than 2 weeks this could throw a spanner into the value of the sterling. A Labour/SNP coalition has already been deemed as negative for the economy by many business leaders.
Although I believe the GBPUSD bear trend may be coming to an end I think we do have potential for another swing lower so I will be remaining short for time being.
We had a false break of this level in March following a news release. Price may sell off from this point, although we could see a test of the .618 fib level.
With the elections coming up in less than 2 weeks this could throw a spanner into the value of the sterling. A Labour/SNP coalition has already been deemed as negative for the economy by many business leaders.
Although I believe the GBPUSD bear trend may be coming to an end I think we do have potential for another swing lower so I will be remaining short for time being.