GBP/USD sharp fall to test key supports below 1.2700 on latest polls

Currently, GBP/USD is trading at 1.2799, down -0.46% on the day, having posted a daily high at 1.2866 and low at 1.2791.

YouGov poll: UK Conservatives projected to fall 16 seats short of overall majority

The latest polls came in showing that the UK Conservative party projected by polling firm YouGov to fall 16 seats short of an overall majority. GBP/USD dropped like a stone post the recent election polls. GBP went from 1.2680 to break the 1.26 handle on the last ten-minute sticks.

This has rocked sterling across the board as further evidence points towards June the 8th as being a very tight race and not something PM May had anticipated when calling for a snap election. 

Valeria Bednarik, chief analyst at FXStreet explained that headlines on polls can trigger sharp movements one way or the other, so caution and tight stops are highly recommended for the next few days. 

GBP/USD could extend drop ahead of UK election 

GBP/USD levels

"At this point, the pair needs to settle above 1.2920 to shrug off the negative tone, something quite unlikely for today," - Bednarik.  

GBP/USD has just dropped shy of a key technical level, 1.2776, the 6 th December high - "We would allow for a tepid bounce from here ahead of losses to the 1.2590/68 the 200 and 55 day ma. Intraday rallies are indicated to fail circa 1.2850/60."