GBP/USD off lows, rises to 1.2950

The pound managed to hold above 1.2900 against the US dollar. After the beginning of the American session, it trimmed losses and moved toward 1.2950 as the UK votes.

Volatility across Pound’s crosses remains limited despite the elections. GBP/USD bottomed at 1.2906 and recently climbed to 1.2953. Currently it trades at 1.3935/40, less than 20 pips below yesterday’s closing price. 

The recent bounce of the pound found resistance at the 20-hour moving average that stands around 1.2950. If the pair managed to stay above it could gain upside momentum. On the downside, a key short-term support could be seen around daily lows, where an uptrend line connecting previous daily lows stands. A break lower could clear the way to a bigger slide. 

Traders appear to be waiting for election results. Exit polls are expected to be released around 21:00 GMT. The European Central Bank (ECB) meeting today did not have a lasting impact on the market and Comey testimony in the US is not affecting the US dollar so far. 

Comey: I perceived Trump request to drop Flynn probe as an order

ECB statement - Press Conference highlights

GBP: Guided by the UK politics - Rabobank

Technical levels 

To the upside, resistance levels might be located at 1.2950/55 (recent high / 20-hour moving average), 1.3000 and 1.3045/50 (May highs). On the flip side, support could be located at 1.2900/10, followed by 1.2870 and then 1.2840 (Jun 2 low).