Cable slips further as pound loses more steam on the day

Technical Analysis

Author: Justin Low | gbpusd

GBP/USD drops to a low of 1.2913 in more choppy trading for the pound

GBP/USD H1 28-11
The pound is finding it tough to build on overnight gains as the currency slips further on the day with cable now easing towards a test of the 200-hour MA (blue line) @ 1.2904.

A fall below that will see buyers lose near-term control of the pair with a break below 1.2900 likely to reinvigorate sellers to build towards a move lower.

It has been a choppy week of trading for the pound and the YouGov MRP poll release yesterday certainly isn't helping with the election sentiment in my view.

The poll indicated a significant majority for Boris Johnson's Conservatives but almost every other opinion poll is hinting at a narrowing lead for the Tories instead.

As mentioned earlier, the YouGov MRP poll may have "accurately" called the 2017 election but that is all that is has going for it. There is no other relevant vote of confidence (no pun intended) and a sample size of one isn't exactly a strong case in the making.

If the poll had indicated a hung parliament instead, it would have fit well into the narrative of other opinion polls and perhaps we'll see more of a trend in the pound.

However, that is not the case so expect the next two weeks to potentially stay more choppy as we have to still factor in what the other opinion polls have to say as well.

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