Pound continues to be mired down by election uncertainty

Technical Analysis

Author: Justin Low | gbpusd

Cable eases back to session lows near 1.2900

GBP/USD H1 02-12
ForexLive
The pound just can't catch a break for the time being as choppy trading continues to be the name of the game ahead of next week's election.

Opinion polls continue to send mixed signals with little to no genuine major consensus on what sort of election outcome can be expected this time around.

There is a general feeling that the Conservatives have an edge to form a majority but it isn't really a given as per what is being telegraphed by recent opinion polls. And that is leaving pound traders in a bit of a pickle to try and gauge short-term direction.

Cable is seen slipping towards the 1.2900 handle again today as price now looks to challenge a test of key near-term levels. The near-term trendline support is being tested now with the 100 and 200-hour MAs near 1.2900 also called into question.

A break below those levels will see sellers regain near-term control but there really isn't much of a proper trend developing as election uncertainty continues to reign over the pound ahead of the 12 December polling.

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