Note: The S/R levels (i.e. likely bank trader order levels) as depicted in their respective timeframes in this and prior articles have not changed, and will probably NEVER change regardless what happens in financial markets. What follows is my own world view, developed from an institutional trading career dating back to 1995.
Cable surged from 1.2850 as general election campaigning wound down before the 12 December poll date, and then from 1.3150 after the Conservative Party confirmed their record gains.
But the pound is facing a strong ceiling above 1.3500, not just from profit-taking but also from new risks showing itself in the horizon.
Traditional pro-republican parties won more seats in Northern Ireland than traditional unionist parties, and the Scottish National Party scored 13 seats over those won in 2017 for 81% of the Scottish seats in the House of Commons.
Scotland is now expected to pressure the British Government for the right to hold another referendum to settle the Scottish independence question.
But that’s a story for another day.
In the meantime, the following are our S/R levels for cable and some select GBP crosses.