GBP/USD falls back below 50-DMA of 1.2806 as Labour continues to gain ground

GBP/USD is again losing height, now trading well below its 50-DMA level of 1.2806 as the latest results show a big win for Labour in Newcastle East and Sunderland West. 

The pound dropped to a low of 1.2713 earlier today after the Exit Polls said showed Labour gaining clout in Parliament, while Theresa May’s Conservatives losing their majority. 

Sterling picked up bid following an initial knee jerk sell-off. However, the recovery ran out of steam at a high of 1.2827 after Washington, Sunderland West, Newcastle East and Newcastle North went to Labour. This is turning out to be a relatively good night for Labour. Consequently, the Cable has fallen back to 1.2775 levels. 

GBP/USD Technical Levels

GBP Plummets as Majority Eludes Conservatives in Exit Polls

Key support levels are 1.2704 (5-DMA), 1.2618 (100-DMA) and 1.2586 (200-DMA). On the other hand, resistance levels are 1.2806 (50-DMA), 1.2885 (10-DMA) and 1.2949 (session high). The daily RSI has dipped below 50.00 levels and the MACD has turned negative.