GBPUSD down to near 1.2500 as the rumour mill cranks up
1.2516 is the low so far as everyone plays catch up with the news and hits the sell button first, and asks questions later.
Top of the rumour list remains a snap election and also May stepping down due to health reasons. Odds for an election have been cut at the bookies.
There's old S&R around 1.2510/15 and that's where we've pulled up, so far.
GBPUSD H4 chart
Interbank traders had been buying the pound up this morning vs USD and AUD and it's likely that they were first out the door on the news.
The market is going to be very nervous until we get the announcement so if you're trading the quid you need to factor that in, or leave it well alone until we know what it's all about.
We have support under 1.2500 at the 2 MA's but stronger support is down around the 1.2410/25 area containing the 55 & 100 DMA's.
If there's a snap election announced, or if she's stepping down, expect the quid to dive further. What the country doesn't need right now is more political uncertainty while we go through the Brexit process. If it's none of that and not anything that's bad news, the quid will snap right back.
