GBP USD continues consolidation on Election Day

GBP/USD (daily chart shown below) has continued to consolidate in a relatively tight trading range on the day of UK elections.

Currently trading just under 1.5250-area resistance, the currency pair is fluctuating squarely between the 200-day moving average to the upside and the 50-day moving average to the downside.

This consolidation occurs after a pullback over the past week from a two-month high around both the 1.5500 resistance area and the 200-day moving average.

The underlying trend continues to be bearish over the longer term despite the pronounced rebound and partial recovery in the second half of April.

In the short-term, as the elections play out on Thursday and in the upcoming days, if the current consolidation is broken to the downside the key price targets are at the 1.5000 and 1.4800 support levels. To the upside, any short-term advance should continue to be challenged by major resistance around the noted 1.5500 level.

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