- GBP/USD failed to capitalize on its early gains beyond 1.32, nine-month tops.
- Some long-unwinding trade kicks in amid nervousness on the UK Election Day.
- Higher possibilities of a majority for Conservatives helped limit the downside.
The GBP/USD pair tumbled to a fresh intraday low level of 1.3116 during the early North-American session, albeit quickly recovered around 50-55 pips thereafter.
The pair failed to capitalize on its early uptick to near nine-month tops and for the second straight session, struggled to find acceptance above the 1.3200 handle. The pullback lacked any obvious fundamental catalyst and could be attributed to some long-unwinding trade amid uncertainty about the outcome of the UK election.
Apart from the technical factors, the intraday slide could further be attributed to some cross-driven weakness, stemming out of the post-ECB bump in the EUR/GBP cross. This coupled with possibilities of some short-term stops being triggered below 100-hour SMA further aggravated the bearish pressure surrounding the major.
Despite the nervousness, anticipation of a majority for the UK Prime Minister Boris Johnson’s Conservative Party continued lending some support to the British pound. The pair once again managed to find decent dip-buying interest ahead of the 1.3100 handle and was last seen trading near the 1.3170 region.
Technical levels to watch
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