GBP/USD surges toward 1.35 on projected Conservative landslide, big levels to watch

GBP/UDS has surged some 2.5% in response to the exit polls in the UK elections which have shown a massive 110-seat Conservative victory. If confirmed, it would allow Boris Johnson to continue as prime minister, with minimal worries from Brexiteers.

GBP/USD is trading at the highest levels since June 2018. 

The weekly chart is showing that the next level to watch is 1.35, which capped a recovery attempt in the spring of 2018. IT is followed by 1.3710, which was a swing low in early 2018. Further up, 1.39 was a support line around that time, and the upside target is 1.4375, the high point last year.

Support awaits at 1.3380, which was the previous 2019 high, and then 1.3275, a high point from the summer.

The Relative Strength Index on the weekly chart is getting close to 70 – overbought territory.