ZuluTrade Blog

Market View

Theresa May and Cable were the "loosers" yesterday

Friday, June 9, 2017 5:34 AM GMT

The polls were correct after all, predicting a clear Tory party victory although the majority was uncertain. Indeed, Theresa May’s decision for snap elections failed. She didn’t manage to take the majority and the rumors for her resignation are now on fire. The results are:

Conservative 48.9% (318 Seats) 

(Theresa May)

 Labour 40.2% (261 Seats) 

(Jeremy Corbyn) 

Scottish National Party 5.4% (35 Seats) 

(Nicola Sturgeon)

Liberal Democrat 1.8% (12 Seats) 

(Tim Farron)

Various scenarios for coalitions are being put together, so we are expecting plenty of “drama” this weekend. Theresa May will ask the Queen for the permission to form a government when she visits Buckingham Palace at 12.30pm today. 

Due to above events, uncertainty remains elevated and therefore, traders should be very cautious with their trading activities especially with GBP correlated pairs. However, intraday traders may find this volatility really challenging. 

Regarding GBPUSD’s technical view, the pair is forming a reversal daily candle after yesterday’s sell off candle. However, price needs to reclaim 1.28 in order to have bullish thoughts. Next support is 1.26 while resistance remains 1.28 and 1.2897. 


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