8 May 2015
EUR/GBP headed to a break of 55dma at 0.7255?
FXStreet (Guatemala) - EUR/GBP has dumped on the release of the the first exit poll for the UK general election.
This has given the Conservative supporters a platform to dance upon as the first estimates came in off the charts. EUR/GBP went from circa 0.7380 to the lows in flash as Sterling jumped and gaped on the charts and rallied almost 2 full cents on the basis that this could be a clean victory to the Conservatives.
Richard Kelly, Head of Global Strategy at TD Securities explained, "If confirmed, we would expect sterling can have yet another surge, as EUR/GBP could break through the 55dma at 0.7255 and open up scope for a move down to at least 0.7160, as worries of uncertainty would greatly diminish."
"But given the margin of error in these early exit polls, and while those in the last elections have been fairly accurate they do not always live up to expectations, we would be quite wary of a head fake here as this sets a very high hurdle now for the results to live up to."
This has given the Conservative supporters a platform to dance upon as the first estimates came in off the charts. EUR/GBP went from circa 0.7380 to the lows in flash as Sterling jumped and gaped on the charts and rallied almost 2 full cents on the basis that this could be a clean victory to the Conservatives.
Richard Kelly, Head of Global Strategy at TD Securities explained, "If confirmed, we would expect sterling can have yet another surge, as EUR/GBP could break through the 55dma at 0.7255 and open up scope for a move down to at least 0.7160, as worries of uncertainty would greatly diminish."
"But given the margin of error in these early exit polls, and while those in the last elections have been fairly accurate they do not always live up to expectations, we would be quite wary of a head fake here as this sets a very high hurdle now for the results to live up to."