Key levels and outlook for pound based pairs before election - part 2

Focus now turns to UK election to be held tomorrow. Implied volatility has reached highest level since 2010 election hovering close 18% for a week.

Pound bulls are showing remarkable resilience against broad based expectation of pound going down.

Outlook and key levels are discussed below for pound based pairs -

GBP/AUD - 1.90

• Short term bias remains on the downside, however as of now downside seems limited. New positions to the downside should be added with caution and tight stop loss.
  
  
• Pair might remain capped to 1.85 to the downside with initial target coming around 1.88. Pair is trading close to support that might result in some bounce back.

• Key support - 1.898-1.904, 1.886-1.882

• Key resistance - 1.924-1.927, 1.944-1.948

GBP/CAD - 1.827

• Pound remains a sell against loonie, rallies could be used to take position on the short side. However Lonnie's affinity with crude oil makes it vulnerable to price changes in the commodity.
  
  
• Short trades are not advised to be kept above 1.867 area. Bounce back towards 1.84 remains good area to enter short trade.
  
  
• Key support - 1.815-1.81, 1.784-1.779, 1.762, 1.758
  
• Key resistance - 1.834-1.838, 1.865-1.87

GBP/NZD - 2.025

• Kiwi remains range bound against pound and it may not be the best pair to short. However broad based sell offs in pound might lead this pair to the downside.

• Key support and resistance pair might be used to take breakouts and range trade.

• Key support - 2.03-1.998, 1.982-1.978

• Key resistance - 2.035-2.04, 2.084-2.088