Technical Bias: Slightly Bullish
- GBPUSD posted biggest intraday rally in recent memory, climbing above 1.55 for the first time since late-February.
- GBPUSD pared gains in the New York session, declining 0.25% to 1.5399.
- Exit polls show slight majority for the Conservative Party in UK General Election
The GBPUSD pared gains in the New York session after posting one of its biggest rallies in recent record after exit polls showed a narrow majority for the Conservative Party in the UK general election.
The GBPUSD soared to 1.5522 in European trade, a more than two-month high. Cable gave up most of those gains later on in the day, tumbling 0.25 percent to 1.5399. The pair faces immediate support at 1.5300 and resistance at 1.5522, the daily high.
Narrow Majority for Conservative Party
The Conservative Party headed by David Cameron won a narrow majority in UK parliament, exit polls from the May 7 general election showed on Friday. The Conservatives secured 330 of 650 seats, giving them 51 percent of parliament. The Labour Party finished at a distant second with 232 seats or 36 percent of parliament. The Scottish National Party was third at 56 seats, followed by the Liberal Democrats (eight seats) and UKIP (one seat).
The results were not as close as the latest opinion polls suggest. Heading into the elections the Conservatives and Labour were essentially tied at 33 percent each, with UKIP trailing at a distant third.
It was the first time the Conservatives had secured a majority since 1992.
The Conservatives focused their campaign on Britain’s economic recovery, which gained significant traction under their leadership. Britain’s employment rate surged to a record high of 73.3 percent this year, while the official jobless rate dropped to its lowest level since 2008. While GDP growth slowed in the first quarter, the outlook is generally favourable, putting Britain near the top of the list of G7 countries in 2015.