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Technical Analysis: UK election will determine the fate of GBPUSD rally

Although a sustained break of 200-week SMA, followed by run-up beyond multi-year-old trendline, favors the GBPUSD pair's further upside, it all depends upon today's UK election results. The ruling Tories are witnessing a shrinking lead over the main opposition Labour Party as far as the latest polls are concerned. However, the odds of the Conservatives to remain the helm of Britain still stand high. Should the British voters are given a clear Parliamentary majority to Prime Minister Boris Johnson-led Conservatives, the Cable can extend its rally towards the yearly top surrounding 1.3380. However, the pair's further upside will be dependent on how well PM Johnson manages to get the EU on his lines.

Meanwhile, a lack of clear majority/hung parliament will not refrain from dragging the GBPUSD below a 200-week SMA level of 1.3100. With this, sellers can look for November month lows near 1.2770 to return to the charts.

It's worth mentioning that the UK voters will head to polling station starting from 07:00 AM GMT while the exit polls are likely to be rolled out from 10:00 PM GMT onward.

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