The Great British Pound has rallied to an 18-month high of $1.35 on the back of a dominant exit poll that forecasts a massive Conservative majority in the general election.
It surged by more than 2.5% in a one-minute candle with the current Conservative government predicted to win with a majority of 86.
The $1.35 level is now acting as a bitter point of resistance following a 12.2% rally since the beginning of August.
It remains a crucial level for the Pound, with a potential breakout indicating the first signs of a bull market for the world’s oldest currency.
The financial crisis in 2009 saw the Pound slump from $2.00 to $1.35, with the following bounce driving price to $1.70 in a six-month period.
The recent downtrend has been attributed to uncertainty surrounding Brexit and the possibility of an anxious hung parliament.
With the Conservative government now being predicted to take a huge majority, it has effectively quelled fears of further disruption that would have been caused by a Labour government commanded by opposition leader Jeremy Corbyn.
Such a resounding result will also be received well by the rest of the EU, which will now been keen on closing a deal on Brexit to ensure Britain’s swift exit on January 31 2020.
Although traditionally accurate, it should be noted that the exit poll is not the final election result and that if a potential shock is caused, the Pound could slump back towards the level of resistance turned support at $1.33.
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