GBPUSD Shoots Up 400 Pips On UK Election Results

GBPUSD was bearish in the morning when the people starting going to vote. At that time, the polls were indicating a hung parliament. So GBPUSD went down around 130 pips before the polls started indicating a strong victory for the Conservative Party. The result there was huge gap and GBPUSD shot up 400 pips. Take a look at the following screenshot.

GBPUSD H1 chart

Notice the big gap in the screenshot. This is the time when the polls started indicating a strong victory for the Tories. So you can see how the market behaved. First observe the bearish divergence in the above screenshot that starts a fall of around 130 pips. Then see a strong bullish divergence and then the sudden climb of 400 pips. The above rally is short lived. Why? GBPUSD is now close a strong resistance level on the Daily Chart and a strong downtrend can start.

Sterling rose against the dollar Friday, amid growing hopes that a hung parliament – and subsequent uncertainty – would be avoided in the U.K. general election.

Exit polls delivered something of a shock late Thursday, when they indicated that the incumbent center-right Conservative Party was on track to win the vote. The Scottish National Party (SNP) also made headlines after winning every Scottish constituency that has declared so far.