GBP/USD cautious around 1.2800 on election jitters

The Sterling has reverted part of yesterday’s moderate advance vs. the buck, now sending GBP/USD back above 1.2800 the figure after bottoming out near 1.2790 in early trade.

GBP/USD attention to UK elections

Cable came under renewed selling pressure after latest Survation/GMB poll showed Labour continues to narrow the gap vs. Conservatives in the run up to the general elections on June 8.

According to recent results, Conservatives are leading with 43% of the vote intention (unchanged from previous poll) vs. 37% of Labour (vs. 34% previous).

The pair’s attempt of recovery lost momentum in the mid-1.2800s on Monday, briefly returning to sub-1.2800 levels during the Asian session while still navigating the area of multi-week lows after failing to sustain the up move further north of the 1.3000 handle.

On another direction, the speculative community continued to scale back its net shorts positions during the week ended on May 23, this time to levels last seen in mid-December 2015 according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is losing 0.18% at 1.2818 facing the immediate support at 1.2772 (low May 26) followed by 1.2758 (low Apr.21) and then 1.2709 (55-day sma). On the flip side, a breakout of 1.2853 (high May 29) would aim for 1.2923 (20-day and finally 1.2949 (high May 26).