GBP/USD around 1.2830, daily tops

The Sterling has started the week on a firm note so far, pushing GBP/USD to the upper bound of the range near 1.2830.

GBP/USD finds support near 1.2770

Cable seems to have found some dip-buyers following Friday’s deep sell-off to the area last seen in late April in the 1.2775/70 band.

In fact, GBP was hit on Friday after results from election polls showed the gap between the Conservative party and Labour party kept narrowing, prompting jitters among investors to re-emerge.

In the meantime, spot keeps correcting lower after failing to extend the rally further north of the 1.3000/50 band, prompting market participants to think that a top could be in place for the time being.

News from the speculative community shows GBP net shorts have been scaled back to levels last seen in mid-December 2015 during the week ended on May 23, according to the latest CFTC report.

An almost empty UK docket this week (manufacturing PMI is due on Friday) should leave the attention to releases across the pond, while developments from the domestic political scenario are also poised to drive the sentiment around GBP ahead of the general elections on June 8.

GBP/USD levels to consider

As of writing the pair is gaining 0.23% at 1.2828 and a breakout of 1.2928 (20-day sma) would aim for 1.2949 (high May 26) and finally 1.3013 (high May 25). On the other hand, the immediate support lines up at 1.2772 (low May 26) followed by 1.2758 (low Apr.21) and then 1.2696 (55-day sma).