GBP/USD: down to 1.2802 fresh low as uncertainty prevails over UK elections

Currently, GBP/USD is trading at 1.2804, down -0.25% on the day, having posted a daily high at 1.2845 and low at 1.2802.

GBP/USD is extending the downside on markets that are losing conviction in a Conservative victory on the 8th June. The polls continue to show a significant possibility that Labour has a fighting chance in a snap election that PM May called, confident that her party would gain more seats and support in her efforts to the best possible outcome from negotiations wth with the EU over Brexit. 

However, Corbyn was very sincere in questions from the audience and Paxman in today's 'The Battle for Number 10' - Live Coverage and he is catching up on behalf of Labour. The latest UK Times poll showed that May's Conservatives lead shrunk to only 6points against the Labour Party 43% vs. 37%. 

May vs. Corbyn, do the markets care about a Corbyn victory? - Kathleen Brooks at Forex.com:

"...markets aren’t that frightened of a win for Labour in 10 days’ time. Perhaps they would see it as a mini positive, and an antidote to Trump and co. on the other side of the Atlantic?"

GBP/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that from a technical point of view, the risk turned towards the downside after the bearish breakout of 1.2900, although there's still a critical support in the way towards 1.2500, the 1.2756 low set on April 21st, as it’s the lowest since PM May announced the election. 

4hr chart

"Technical readings in the 4 hours chart confirm the negative bias, as technical indicators have barely corrected oversold conditions before losing upward strength, whilst the price keeps developing below a bearish 20 SMA, now providing resistance around 1.2880," - Bednarik