FxWirePro: GBP/USD breaks major support at 1.2915, decline till 1.27 likely

• GBP/USD slumps on Pound weakness as conservative’s lead fades ahead of June election.
   
• Latest opinion poll showed PM May’s Conservatives dropping another one percentage point on the week to 43%-35% (Labor) ahead of the national election.
   
• GBP/USD has broken key support at 1.2915 and we see the possibility of drag till 1.27 mark.
   
• On the data front, the downward revision to second estimate of UK Q1 GDP suggested that economic growth decelerated sharply in the early stages of the year.
   
• Technical indicators on daily charts are bearish. Cloud caps upside on weekly charts.
   
• Next immediate support for the pair is seen at 1.2830 (trendline). Break below will see drag upto 1.2797 (23.6% Fib of 1.1986 to 1.3048 rise).
   
• Violation at 23.6% Fib will then take the pair to 1.2642 (38.2% Fib).
   
• Second estimate of US GDP in addition to the G7-summit, are going to be major market movers for today.

Support levels - 1.2830 (trendline), 1.2797 (23.6% Fib of 1.1986 to 1.3048 rise), 1.2642 (38.2% Fib)

Resistance levels - 1.29, 1.2933 (20-DMA), 1.2949 (5-DMA)

Recommendation: Good to go short on rallies around 1.2880/85, SL: 1.2940, TP: 1.2830/ 1.28/ 1.2755/ 1.27

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -128.909 (Bearish), while Hourly USD Spot Index was at -50.6284 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.