GBP/USD is taking a hit as markets turn jittery over today's UK election, which could result in a Brexit under the current agreement or more uncertainty about Britain's plans to leave the EU.
Since the YouGov poll nS8N26U03B on Tuesday showed a drop in the parliamentary majority projected for the Conservative Party, sterling has fallen under the sway of alternating market interpretations.
The pound was initially hurt by the narrowing in the Tory majority forecast, then recovered on notion that a majority was still foreseen, however diminished.
The pound has reverted to losses today as results of voting are awaited.
The stakes are considerable for GBP/USD.
The market's skepticism over the size of the projected Conservative majority, current GBP/USD weakness and high overnight volatility FXVV, highlights the risks involved.
A wide Tory majority will likely boost GBP/USD near 2019 highs by 1.3380.
A slight majority or minority will likely see GBP/USD melt through support at 1.2914, the 10-WMA and eye a move toward 200-DMA support at 1.2697.
With further reversals of recent gains eyeing the October lows by 1.2200 nL1N28M0HO.