GBPINR after election season looks overbought on oscillators

The Conservatives have exceeded expectations and have enough seats to form a government.

The initial GBP rally which may extend near-term, is vulnerable to policy uncertainty and EU referendum.

GBPINR overlooked the overbought signals and began the session with a beat. The pair surged above the 99 mark but eventually settled down to close with almost a percent gain just below the 99 mark. We continue to mention that the pair has rallied one side from the lows of 91.14 towards the high of 99.61.

This is almost 10% rally without any meaningful correction. Even the oscillators are looking extremely overbought. No doubt fundamentals look pretty stronger on pounds but there is a strong possibility that the pair might consolidate or correct in the coming weeks.