GBP/USD dips below 1.27 as Labour begins to snatch seats from the Conservatives

GBP/USD fell to a session low of 1.2692 (lowest level since April 18) after latest report showed a swing towards Labour party from Tories in key constituencies like Battersea, Shipley, Tooting, Vale of Clwyd, Stockton South.

The results show the exit polls may have understated Labour party. The Tories would be the biggest party in parliament, but with no overall majority. As of writing, the Labour party was on 30 seats, the Conservatives on 20 and the Scottish nationalists on 3. 

A minor bid wave ensured the spot recovers from 1.2692, however, the upside remains capped around 1.2740. 

GBP/USD Technical Levels

Key support levels are 1.2706 (Feb 2 high), 1.2618 (100-DMA) and 1.2586 (200-DMA). On the other hand, resistance levels are 1.2806 (50-DMA), 1.2885 (10-DMA) and 1.2949 (session high). 

The key Fib levels to watch out for are - 1.2689 (38.2% of March low - May high), 1.2578 (50% of March low - May high) and 1.2826 (23.6% Fib).