8 May 2015
GBP/USD shoots beyond 1.55 as Tories win likely
FXStreet (Mumbai) - The British pound regained momentum and rallied against its American counterpart in the late-Asian session, jolting GBP/USD higher above 1.55 handle as the final election results closes in with markets almost started to believe a Tories win and Cameron on course to remain PM.
GBP/USD rises from 1.5480
The GBP/USD pair rallies 1.73% at 1.5506, retreating from fresh three-month highs reached at 1.5522. The cable stormed through the 1.55 barrier and extends its upsurge as markets cheer Conservatives Party win by majority after a preliminary poll showed that he would be re-elected, and by some margin, as we head closer to the final countdown.
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.
If the exit poll is correct, then the Conservatives and Liberal Democrats seats put together would give an exact simple majority of 326 out of the total 650.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5539 (Feb 25 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5383 (Today’s Low) levels.
GBP/USD rises from 1.5480
The GBP/USD pair rallies 1.73% at 1.5506, retreating from fresh three-month highs reached at 1.5522. The cable stormed through the 1.55 barrier and extends its upsurge as markets cheer Conservatives Party win by majority after a preliminary poll showed that he would be re-elected, and by some margin, as we head closer to the final countdown.
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.
If the exit poll is correct, then the Conservatives and Liberal Democrats seats put together would give an exact simple majority of 326 out of the total 650.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5539 (Feb 25 High) above which gains could be extended to 1.5553 (Feb 26 High) levels. On the flip side, support is seen at 1.5400 below which it could extend losses to 1.5383 (Today’s Low) levels.