Cable trades around 1.2885-95 to start the European morning
Buyers attempted a break above the 1.2900 handle overnight but the move higher proved to be fleeting as price eased back lower to hug the key hourly moving averages after.
That remains a key resistance point for cable at the moment as the 100 and 200-hour moving averages are helping to limit gains with the two levels proving to be where buyers are struggling to try and hold a firm break to the upside.
Price has eased a little lower at the start of trading now but the range for the day remains relatively narrow. There were a couple of polling data from yesterday that were not too favourable to the Tories but I wouldn't read too much into that.
I reckon the YouGov MRP poll will hold more significance towards near-term price action in the pound so just be mindful of the release at 2200 GMT tomorrow.
In any case, the pound is still resting higher than the end of last week but there has to be more for buyers to go chasing a move back towards 1.3000 in my view.
It's a case of trying to balance out the election sentiment and technicals ahead of 12 December and as mentioned before, that can definitely lead to more choppy trading.
The risk for sellers now is if price finds a way above the key hourly moving averages and holds a break above 1.2900. Meanwhile, the risk for buyers is if price starts to chase the downside towards 1.2850 with key near-term support then seen closer to 1.2820-25.
