GBPUSD RECOVERS AS THERESA MAY FORMS A COALITION WITH THE DUP PARTY
The British pound has moved sharply higher after the current British Prime Minister Theresa May agreed to form a coalition government with the DUP party.
In an extremely volatile European session, the GBPUSD pair moved off an intraday low of 1.2635, with buyers quickly taking the pair above 1.2700 level, with price currently trading at 1.2778.
The move came as the Conservative party only managed to gain May 318 seats in last night election, and failed to gain the required seats needed for a majority leadership. The ten seats from Democratic Unionists Party has given Theresa May the majority she needed.
Technically the GBPUSD pair has turned bullish in the short term, with buyers taking control above 1.2700. Support is now located at 1.2740 and 1.2710.
The pair has so far made an impressive rally above the May 31st low at 1.2769, with this area likely to decide the next directional move of the pair. A loss if this area should see sellers take price back towards the 1.2730-40.
To the upside, further resistance for the pair is located at 1.2790 and 1.2840, with higher time frames closes above 1.2740 should be taken as bullish.