GBP/USD stays around session highs near 1.2930

The Sterling is extending its positive start of the week today, now lifting GBP/USD to the area of daily highs near 1.2930.

GBP/USD bid ahead of elections

Renewed USD-weakness has been sustaining Cable’s upside further north of the 1.2900 handle so far despite the prevailing uncertainty on the general elections due on Thursday.

In fact, GBP remains pretty resilient in spite of the different results from latest election polls, which keep showing Conservatives on the lead albeit by a gap from 1 to more than 10 pts.

Nothing relevant data wise in the UK docket until Friday’s industrial production, manufacturing production and the NIESR GDP Estimate. Thursday’s elections, then, will grab all the attention and will drive the sentiment around GBP in the near term.

Further data from the speculative community showed GBP net shorts have ticked higher to 2-week peaks during the week ended on May 30, according to the latest CFTC report.

GBP/USD levels to consider

As of writing the pair is gaining 0.16% at 1.2927and a breakout of 1.2942 (high Jun.5) would aim for 1.3013 (high May 25) and finally 1.3051 (2017 high May 18). On the flip side, the immediate support aligns at 1.2845 (low Jun.5) followed by 1.2767 (low May 31) and then 1.2757 (55-day sma).