GBP/USD retraces 38.2% of Asian session sell-off

GBP/USD recovered to 1.2790 (38.2% Fib R of 1.2949-1.2692) after news hit the wires that the BBC is forecasting 322 seats for the Conservatives. 

The latest reports continue to show Labour outperforming the Conservatives. The odds of Corbyn becoming the new UK Prime Minister have increased

Investors are forewarned that a Labour victory may not necessarily spell doom for the British Pound. Corbyn has criticized May for her confrontationist attitude towards Brussels and favors ‘softer Brexit’ Furthermore, the Labour party has promised higher spending if elected. 

GBP/USD Technical Levels

The spot was last seen trading around 1.2785. The key resistance levels are - 1.2790 (38.2% Fib), 1.2820 (50% Fib), 1.2885 (10-DMA). The key support levels are - 1.2753 (23.6% Fib), 1.2692 (session low), 1.2586 (100-DMA).