GBP/USD Pre Election Analysis

FX_IDC:GBPUSD   British Pound / U.S. Dollar
After the initial FBI/Clinton related hit on the greenback, followed by the High Court ruling combined to send Cable through 1.2325-30. On the hourly timeframe this does look like a retracement but we have some key levels around where we are right now. In this recent retracement we have seen a break into negative territory with a RSI trendline break . We are currently now seeing a test of the previous wave low. As mentioned trading the elections is binary but it is very important to keep an eye on levels surrounding price.

R3 1.2557
R2 1.2511
R1 1.2466
Current 1.2390
S1 Upward internal trendline
S2 1.2333
S3 Speed trendline from the 28/10 lows
S4 1.2200

If Hilary wins we could see a test of the 1.2250 mean value in the lower distribution area or even a test of the lows (1.2081). If Trump wins we may see a test of the high and even a move into new distribution. Dont forget we will be looking out for the result of who will be controlling the senate. Democrat control - primarily due to Clinton's leadership - should give an immediate boost to the USD, while Trump's Republicans would send it lower.

Kind regards

Rajan Dhall MSTA