GBPUSD DROPS ON NEW YOUGUV POLL PROJECTION

The British pound fell sharply against the U.S dollar as a YouGov, the internet-based market research firm, projects that the Conservative Party will fall 16 seats short of a overall majority in the upcoming general election.

The news provoked heavy selling in the GBPUSD, causing the pair to fall instantly from the 1.2864 level, towards 1.2790. The pair is currently consolidating losses above 1.2800, trading around the 1.2820 region.

Short term indicators are currently neutral to slightly bearish, with the pair consolidating between the 1.2815 to 1.2830 range.

Numerous failed attempts yesterday to surpass trendline resistance at 1.2865 are also adding to selling GBPUSD pressure.

Medium term indicators are increasingly turning bearish, with sellers firmly in control whilst the pair trades beneath the 1.2835 region.

The H1 100 period moving average is strong resistance at 1.2866, with the daily time frame 20 period moving average acting as the main support at 1.2792.

A multi time frame close below 1.2792 should provoke further selling towards 1.2750 and 1.2710.