8 May 2015
GBP/USD rejected at 1.55, eases to 1.5460
FXStreet (Mumbai) - The British pound took a breather in its upsurge against its American counterpart in the mid-Asian trades, with GBP/USD deflating from fresh monthly highs just shy of 1.55 handle as markets now await the final outcome of the UK elections that may confirm first exit poll and early results suggesting the Conservative Party way out in front.
GBP/USD retraces from 1.5498
The GBP/USD pair trades 1.42% higher at 1.5462, failing to breach the crucial 1.55 barrier. The cable trims mild gains as traders resorted to profit-taking after the major failed to surpass 1.55 mark. Markets also preferred to lock-in gains ahead of the final outcome due out shortly.
Earlier this session, 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 retraces from 1.5498
The GBP/USD pair trades 1.42% higher at 1.5462, failing to breach the crucial 1.55 barrier. The cable trims mild gains as traders resorted to profit-taking after the major failed to surpass 1.55 mark. Markets also preferred to lock-in gains ahead of the final outcome due out shortly.
Earlier this session, 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.