GBPJPY Losses on Sterling post-UK General Election 08-06-2017
The initial rise in value of GBP after the Election announcements has been offset by the outcome of the General Election on 8th June with Conservative Party losing its majority but still managing to agree with DUP to get their support to form a minority government. The initial reaction of global markets has been illustrated by a decline in GBP.
The political instability caused by the General Election, Theresa May's commitment to continue with Brexit and DUP's support (unpopular decision in the UK) all could alienate investors and might result in a long term uncertainty for GBP. There are no reasons to suggest a bullish run for the British Sterling so short selling is an attractive opportunity.
Technical analysis: Crossing of 150 and 200 MAs in a bearish direction, Fibonacci levels with trend line, RSI bearish, MACD weak for more than a month, previous structure from March/April.
The political instability caused by the General Election, Theresa May's commitment to continue with Brexit and DUP's support (unpopular decision in the UK) all could alienate investors and might result in a long term uncertainty for GBP. There are no reasons to suggest a bullish run for the British Sterling so short selling is an attractive opportunity.
Technical analysis: Crossing of 150 and 200 MAs in a bearish direction, Fibonacci levels with trend line, RSI bearish, MACD weak for more than a month, previous structure from March/April.