GBP/USD tumbles to lows in sub-1.2900 levels

After advancing to daily highs near 1.2950, GBP/USD has come under renewed selling pressure and is now flirting with session lows in the 1.2870 region.

GBP/USD gains capped near 1.2950

Cable gained some traction earlier in the session after another bout of USD-weakness sent the US Dollar Index to fresh 2017 lows in the mid-96.00s, although it has recovered part of the pullback so far.

In the meantime, GBP stays under pressure amidst persistent risk-off theme following the recent attacks in the UK and rising uncertainty regarding the outcome of the UK’s general elections due on Thursday.

Recall that election polls have recently shown quite different results. Although Conservatives keep leading the vote intention, the gap vs. Labour ranges from 1pt to 10/11 pts according to several polls, all collaborating with the already uncertain scenario. In this regard, it is worth recalling how bad fared polls with the Brexit referendum, back to late June 2016.

GBP/USD levels to consider

As of writing the pair is losing 0.21% at 1.2879 facing the immediate support at 1.2845 (low Jun.5) followed by 1.2767 (low May 31) and then 1.2757 (55-day sma). On the other hand, a breakout of 1.2950 (high Jun.6) would aim for 1.3013 (high May 25) and finally 1.3051 (2017 high May 18).