GBPUSD MOVES BACK ABOVE 1.2800

After suffering the biggest one-day fall since January in Friday's trading session, the GBPUSD pair is currently recovering above the 1.2800 handle, moving towards trendline resistance at 1.2844 in early Monday trading.

The sterling sell-off stems from opinion polls in UK, which are pointing to a narrower-than-expected win for Prime Minister Theresa May in the June election, with the Labour party gaining ground on the Conservative party.

The M5 chart shows the recent decline in the GBPUSD pair towards 1.2775, with the pair eventually stabilizing above the 1.2800 level.

Currently the pair is building short term bullish momentum towards 1.2844 and 1.2864 resistance, with intra-day buyers in control whilst price trades above 1.2815.

Near term support below 1.2825 is currently located at 1.2803 and 1.2792.

The H4 chart highlights the importance of the uptrend line, with medium term GBPUSD sellers in control whilst the pair trades below the key trend line, with further downside targets below 1.2775 coming in at 1.2705 and 1.2640.

A break back above the trendline should encourage further gains towards 1.2890 and 1.2940 resistance.