GBP/USD once again had trouble holding above 1.2900, currently trades down 0.36% at 1.2852.
Recent bullish sterling tones on the back of growing Tory poll gains ahead of the Dec. 12 election have been dialed back after ICM nL8N2854BY and Kantar nL8N2854JE polls indicate Conservatives' lead over Labour is shrinking.
If the Conservatives fail to win a decisive majority, Brexit risk will likely resurface, knocking the pound out of its current, 1.3012-1.2769, range.
Tightening GBP/USD Bollis hint at the potential for increased volatility in the near-term, and with the UK election a little more than a fortnight away, GBP/USD may be shaken from its recent tight range as traders shrug off the lack of year-end liquidity and exit recent longs put on as Conservatives gained in election polls.
A continued narrowing of Tory-Labour polling puts GBP/USD support by 1.2975, lower 30-day Bolli, and 1.2769, the Nov. 8 low, in view.
A break below 1.2769 puts the 200-DMA at 1.2702, and 1.2605, the 50% Fib of October's 1.2198-1.3012 rise, in sharper focus.
Below 1.2605, and into the daily cloud, bears regain momentum for a possible retest of October's 1.2198 low.
GBP Chart: Click here