GBP/USD Is Undecided On The Election Day

While waiting for the results of the British snap general elections the GBP/USD pair has been moving relatively peacefully, and in the past four hours it has been forming a figure that resembles a pennant.

Usually this is viewed as a trend-continuation figure and if we take into consideration that the previous movement from 18th May to 31st May (1.30474- 1.27686) was to the downside, then from a technical analysis point of view we should expect another drop after the figure finishes its formation.

On the other hand, if we look at the weekly time frame, the spinning top bar at the bottom of the downward move from last week is a warning for a new rally.

In other words, the situation is rather unclear, which is in synch with the expectations of the market for the results of said general elections.

To the upside the target is the resistance around 1.3150
To the downside the target is the support around 1.2700.

Now we have to see what the voters will decide and how the market will react.