GBP/USD struggling for direction around 1.2900

The Sterling is posting marginal losses vs. the greenback on Wednesday, taking GBP/USD to the area of the key 1.2900 handle ahead of the opening bell in Europe.

GBP/USD attention to UK elections

Cable is retreating after three consecutive advances so far today, looking to extend the rebound after last week’s drop to the 1.2770 region. However, gains further north of the mid-1.2900s appear elusive for the time being and could be signaling the start of some consolidation ahead.

GBP should remain under pressure in the next couple of days in light of the UK’s general elections due tomorrow, with election poll results driving the sentiment in the very near term.

It is worth mentioning that latest polls still see Conservatives on the lead, although the gap vs. Labour ranges between 1 and 10 pts.

UK’s calendar is muted today, whereas the EIA report on crude oil inventories is only due in the US docket.

GBP/USD levels to consider

As of writing the pair is losing 0.04% at 1.2908 facing the immediate support at 1.2845 (low Jun.5) followed by 1.2767 (low May 31) and then 1.2764 (55-day sma). On the other hand, a breakout of 1.2953 (high Jun.6) would aim for 1.3013 (high May 25) and finally 1.3051 (2017 high May 18).