As soon as the first preliminary results of the midterm elections in the United States became known, the dollar began to actively fall in price. The Republicans were clearly ahead of the Democrats. If the Republican Party wins, an extremely difficult situation will develop when any of the White House's initiatives will meet the resistance of Congress. In the conditions of the growing economic crisis, this is fraught with serious consequences, since procrastination can be very, very expensive. Now the markets have somewhat stabilized. Counting of votes continues, and so far none of the parties has taken the necessary majority in both the Senate and the House of Representatives. At the same time, at the time of writing this material, Democrats have 47 seats in the Senate, while Republicans occupy only 46 seats. To win, you need to have 51 seats. In the House of Representatives, where 219 seats are needed for a majority, Republicans get 187 representatives, and Democrats with 152 seats. The market will move again towards the end of the vote count, and everything will depend on which party gets a majority in both houses of Congress. At the same time, even if the Republicans gain control only of the House of Representatives, this will be enough to further weaken the US currency.
The GBPUSD currency pair managed to maintain the upward cycle previously set in the market during the jump. As a result, the quote remained above the 1.1525 mark. The scale of the pound's growth from November 4 to November 8 is around 400 points.
The RSI H4 technical instrument is moving in the upper area of the 50/70 indicator, which indicates that traders are highly interested in long positions.
The MA moving lines on Alligator H4 and D1 are directed upwards, this signal corresponds to the general mood of market participants.
Expectations and prospects
Keeping the price above 1.1525 may prolong the upward movement. In this scenario, it is possible to update the local high of October, which in turn will open the way towards the resistance level of 1.1750.
As for the bearish scenario, traders will consider it again if the price returns to the limits of the area where trading forces interact at 1.1410/1.1525.
Complex indicator analysis in the short, intraday and medium-term periods has a buy signal due to the upward cycle.
