GPBUSD FALLS UNDER 1.2800 AGAIN
The GBPUSD pair traded briefly below the 1.2800 level after being rejected from the 1.2850 resistance area in Monday trading, provoking strong technical selling towards 1.2794 overnight. However the move below 1.2800 proved short lived for the pound, with buying interest soon moving the pair back above the 1.2800 level.
In the coming U.S session the pair remains vulnerable to further losses, as new polls show the UK Conservative parties lead over the opposition Labour Party dropped to just six percentage points, ahead of the upcoming June 8 election.
Short term indicators suggest the pair may attempt to move back towards the 1.2840 level whilst trading above 1.2814 resistance.
A loss of the 1.2806 near term low may provoke selling towards 1.2994 and a price test of the former weekly low at 1.2775.
Medium term indicators point to range bound trading for GBPUSD pair, between the daily 50 period moving at 1.2788 and the uptrend line, currently located at 1.2850.
A move below the 50 period moving average should accelerate medium term selling pressures towards the 1.2600 level.
To the upside, a move above the 1.2850 uptrend line should provoke buying interest towards the daily 20 period moving average, currently located at 1.2925.