8 May 2015
GBP/USD attacks 1.55 as Conservatives set to win by majority
FXStreet (Mumbai) - The British pound skyrocketed against its American counterpart in the Asian morning, with GBP/USD piercing through 1.5450 – psychological barrier as markets cheer the first exit poll results that suggest the Conservative Party is the winner of Thursday's election while the ongoing vote count so far also reflects David Cameron set to win by a majority.
GBP/USD shoots beyond 1.5450
The GBP/USD pair trades 1.62% higher near fresh monthly highs of 1.5493, jumping nearly 100 pips from Tokyo open. The cable continues it upbeat momentum and remains heavily bid after an exit poll result showed that Cameron’s Conservatives Party is set to win UK’s election by majority, which would likely see a referendum held on the UK's exit from the EU.
The exit poll for the BBC, ITV and Sky indicates that the Conservative Party came out as the winner in Thursday's election with as many as 316 seats in the next parliament, which would be an increase from the 302 seats it had held in the previous parliament.
A separate exit poll made by YouGov for the Sun showed significantly different predictions, with the Conservatives gaining 284 seats; Labour 263, Liberal Democrats 31; Scottish National Party (SNP) 48, and UKIP 2; and Plaid Cymru with 3 seats.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5500 above which gains could be extended to 1.5539 (Feb 25 High) levels. On the flip side, support is seen at 1.5383 (Today’s Low) below which it could extend losses to 1.5325 (April 29 Low) levels.
GBP/USD shoots beyond 1.5450
The GBP/USD pair trades 1.62% higher near fresh monthly highs of 1.5493, jumping nearly 100 pips from Tokyo open. The cable continues it upbeat momentum and remains heavily bid after an exit poll result showed that Cameron’s Conservatives Party is set to win UK’s election by majority, which would likely see a referendum held on the UK's exit from the EU.
The exit poll for the BBC, ITV and Sky indicates that the Conservative Party came out as the winner in Thursday's election with as many as 316 seats in the next parliament, which would be an increase from the 302 seats it had held in the previous parliament.
A separate exit poll made by YouGov for the Sun showed significantly different predictions, with the Conservatives gaining 284 seats; Labour 263, Liberal Democrats 31; Scottish National Party (SNP) 48, and UKIP 2; and Plaid Cymru with 3 seats.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5500 above which gains could be extended to 1.5539 (Feb 25 High) levels. On the flip side, support is seen at 1.5383 (Today’s Low) below which it could extend losses to 1.5325 (April 29 Low) levels.