GBP/USD remains flat below 1.29, headed for weekly gains

The GBP/USD pair is trading sideways in a tight channel around 1.2880 mark and remains virtually unchanged on the day on Friday. Following last week's sharp fall, the pair is about to end the week nearly 60 pips higher.

Although the greenback recorded losses against most of its major rivals on disappointing jobs report today, the pair failed to take advantage as investors remain hesitant on taking long GBP positions ahead of the general election in the U.K. on June 8.

• US Dollar slumps to fresh 2017 lows post-NFP
• US: Total nonfarm payroll employment increased by 138,000 in May

The latest polls all suggest that Prime Minister May's Conservatives are closer to a victory but a recent report by The Independent suggested that May’s personal approval ratings fell below 50% for the first time since the announcement of the snap election back in April. "The findings suggest 50 percent of people are dissatisfied with Ms. May while only 43 percent are satisfied - her lowest ratings to date," reported The Independent. Furthermore, it's still unclear if Conservatives will be able to get enough seats in the Senate to win the majority.

• UK Election: Ashcroft Electoral Model suggests UK PM May will win majority
• GBP: Guided by political permutations - Rabobank
• UK: May's way or the highway – Rabobank

Technical outlook

“Momentum signals have shifted considerably and the RSI has drifted below 50 into bearish territory. The short-term MA’s are confirming, with the crossing of the 9 day MA below the 21 day MA. We look to this week’s range roughly bound between the mid-1.27s and 1.29, and note the potential for weakness toward the 50 day MA at 1.2766”, said Eric Theoret, FX Strategist at Scotiabank, in a recent report.