The bears loosened grip on the pound heading into early Europe, allowing a tepid-bounce in GBP/USD back towards 1.29 handle.
GBP losing its shine on UK election jitters and weak fundamentals
The spot trims losses, although remains heavily offered ahead of the European open, as the latest opinion poll outcome on the UK general election exacerbates the pain in the GBP. A latest YouGov poll showed that the opposition Labour Party had cut the lead of the UK PM May's Conservatives to five points, as cited by Reuters.
Meanwhile, the GBP/USD pair remains sold-off into weaker Q1 GDP revision released a day before, which adds to the bets of a delay in BOE rate hike plans until next year. Moreover, ongoing weakness in commodity-currencies amid the OPEC-led oil-price declines also keeps the major pressured.
Focus now remains on the US durable goods and prelim GDP data due later today for fresh direction on cable, while the UK docket remains absolutely data-empty.
GBP/USD Levels to consider
Karen Jones, Analyst at Commerzbank noted: “GBP/USD continues to struggle at 1.3060: Sterling continues to struggle with 1.3060 the 29th September high. The recent new high has not been confirmed by the RSI and we note the 13 count on the daily chart. The market is easing back to the short term uptrend at 1.2826. We would allow for this to hold the initial test, but acknowledge that the risk has increased for a break below here to 1.2776 the 6th December high and potentially 1.2595 the 200 day ma. While above 1.2776 and upside bias remains for scope to the 1.3443 September 2017 high.”
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