GBPUSD: Cable firmer. UK election, Thursday, now the main focus by FX Charts Daily

Cable had an improved session after an early dip to 1.5088, after the soft UK Construction PMI, rallying strongly to 1.5217 where the 200 HMA (1.5227) and the 100 HMA (1.5240) prevented further gains as Cable gave up on the topside and has since returned to 1.5270.With the UK election now upon us (tomorrow), a day of choppy trade is probably in order as the market battens down the hatches ahead of the storm that is bound to arrive, particularly if the Conservatives lose power to Labour, propped up by the SNP although they are not going to be happy colleagues if they have to work together. It all looks a real mess, and not positive for Sterling.

In the meantime, the points to watch remain largely unchanged. A move back to 1.5200 is possible, above which would return to the session high. Above 1.5225 (daily Tenkan) would open the path to Fibo levels of the fall from 1.5495 at 1.5240 (38.2%) and then to 1.5290 (50%) and to 1.5340 (61.8%).

The downside will find bids at 1.5150 (minor) and at 1.5100 and 1.5085. Below this would head back towards 1.5055, which is where the top of the previous long term descending channel lies. Back in the channel, would signal that the recent move higher was a false break and would signal further downside progress towards 1.5028 (50% pivot of 1.4565/1.5491) and 1.5000. Below here would open the way for a deeper decline to 1.4918 (61.8% of 1.4565/1.5491) and 1.4855 (21 April low) and 1.4785 (76.4%).

Today sees the services PMI but the real action will take place once the election result is known. Friday will be a busy session then, with both the Election result and the US NFP due. Overall, I prefer the idea of selling Cable, but choose levels carefully. It will be a wild ride!

Economic data highlights will include:

UK Services PMI.