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Crosshair and different display resolution?

So here is something i cant uderstand(or its probably just the way it is).
Here are two screenshots i took with my phone.

1080p
https://s3.postimg.org/x434xerar/1080p.jpg

720p
https://s3.postimg.org/4d6b7clgz/720p.jpg

My crosshair is the yellow circle thing.Im using the setres 1920x1080f and 1280x720f commands.
In 1080p the crosshair circle is ok but in 720p the circle crosshair looks squashed?Is this how its supose to be or is something wrong with the aspect ratio?

Initially i did two screenshots in windows to check it out,only to find out that the screenshoot of the 720p looks fine.Thats why the ones im posting here are made with a phone to show what i mean.

The crosshair is a flash SWF file by the way.

That is really strange. 1920x1080 and 1280x720 are the same aspect ratio. Does it also look squished at that resolution if it’s windowed?

UPDATED info

Im sorry for the delay.
No,in windowed mode it looks like it shoud…In the photos i see that is not only the crosshair,but the textures background also(which woud mean everything).

I tried the SCALE TOGGLE Fullscreen command but the effect is the same.I did something else that will probably add even more mystery to the case.My monitor is set to its highest res which is 1920x1200.I decided to change it to 1920x1080 and do the phone test again.

1080p
https://s30.postimg.org/5ikminnk1/1080p.jpg

720p (not the best photo but we can see that the crosshair is not a perfect circle)Still i find it a bit better.
https://s30.postimg.org/gkpph3hmp/720.jpg

We can see now that with the monitor set at 1920x1080 the new 720p photo is streched in vertical.(before it was in horizontal with the monitor set at 1920x1200).

Dont know what is hapening here.Still i dont think monitor res shoud have effect in udk play on pc mode as what we set there shoud scale the way it wants.Not scale(strech to the monitor resolution?)

This is udk 2013-07

Updated the 720p photo
And i just changed my monitor back to 1920x1200 and did changed the udk game to 720p res and now the circle is a litle streched in the verticle as it was when the monitor was at 1920x1080…