GBPUSD—election jitters

Mostly markets look ahead, discounting news so that by the time the average person becomes aware of anything happening, the market is moving on. In the case of the pound, though, it looks as if the market is jittery, completely unsure of the outcome. GBPUSD has dropped lower hitting 1.4844 and in doing so nudged below its long term uptrend line from early '09. It looks like over reaction to me.

I went long at 1.4875 but I've already taken some profits at +30 pips and moved my stop to breakeven. I wouldn't be surprised to see more reaction, make that kneejerk reaction.

Here's the 15-minute chart:












© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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