• GBP/USD declined on Friday as sterling was weighted down after Prime Minister Theresa May's Conservative Party lost its parliamentary majority in national elections, potentially disrupting Brexit negotiations.
   
• The outcome of the snap poll, called by Prime Minister Theresa May to try to bolster her parliamentary majority, was a blow to investors who had already weathered major risk events in the United States and Europe the previous day.
   
• The result flagged the worst possible election outcome due to uncertainty, saw the pound fall as much as 2.5 percent.
   
• The pair made daily lows at 1.12632 but recovered to trade at 1.2735 levels in the early US session.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2802 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2747, a break above this level would expose the cable to next resistance level at 1.2802 levels.
   
• To the downside strong support can be seen at 1.2691, a break below at this level will open the door towards next level at 1.2625.
  
  Resistance Levels
  
  R1:  1.2747 (50% Retracement level)
  
  R2: 1.2802 (61.8% Retracement level)
  
  R3: 1.2851 (May 29thhigh)
  
  Support Levels
  
  S1: 1.2691 (38.2 % Retracement level)                   
  
  S2: 1.2625 (23.6 % Retracement level)
  
  S3: 1.2600 (Psychological levels)