GBP/USD: UK election jitters to weigh amid lack of data

The GBP/USD pair slumped sharply in the Asian opening trades and from there embarks upon a steady recovery path above 1.28 handle, as we progress towards the early European trading.

GBP/USD back above 1.2800

The major is seen consolidating the Asian recovery, after having witnessed a steep drop to 1.2792 levels, as the pound was sold into latest poll results. YouGov poll: UK Conservatives projected to fall 16 seats short of overall majority

Despite, several recovery attempts made by cable over the last few trading days, uncertainty around the UK election continue to keep the rate in close proximity to the four-week lows of 1.2772 struck last week.

Moreover, broad based US dollar, in the wake of yesterday’s upbeat macro news and higher treasury yields, keeps the bearish pressure intact on the spot. Also, tumbling oil prices mixed Asian markets weigh negatively on the risk currency GBP.

Looking ahead, in absence of fresh economic news from the UK docket, the major will continue to get influenced by the developments surrounding the UK elections and USD dynamics, with the US pending homes sales and Fedspeaks to provide fresh momentum.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “In the 4 hour chart, the price remains well below a bearish 20 SMA, whilst technical indicators head nowhere, but hold within negative territory. Approaches to the 1.2920 region, will likely result in a retracement, not because of selling interest aligned around it, but because of dollar's bears taking profits out of the table, not willing to risk much ahead of June 8th. Support levels: 1.2790 1.2765 1.2730 Resistance levels: 1.2840 1.2885 1.2920.”