The British currency's confident rise marked at the beginning of the week was interrupted by not too positive political news. The pound, nervously reacting to opinion polls in the UK, lost ground. However, experts are counting on its restoration in the near future.
According to current polls, the chances of the Conservative party winning the upcoming elections could turn out to be low. The survey results were as follows: Conservatives gained 43% of the vote, and Labour - 32%. The current situation undermines the leading position of the national currency. The pound was weak on Tuesday, November 26. It began to plummet, barely reaching 1.2900. The British currency was trading in the range of 1.2870-1.2871 yesterday.
Subsequently, the GBP/USD pair fell even lower, reaching 1.2853–1.2854. Experts have recorded a downward trend in the pair.
Many analysts are confident that even after the general election in the UK, scheduled for December 12, the pound will remain in the range from 1.2800 to 1.3000. A similar scenario is possible if the so-called "suspended" (that is, temporary) Parliament is elected until clarity appears on the country's political horizon. At the same time, a number of economists believe that even if the Conservative Party and Prime Minister Boris Johnson win the election, the problems associated with Brexit will not be solved by themselves. Great Britain has to go through a winding path to conclude new trade agreements both with the European Union, the United States and other countries in order to bring trade to normal.
Such shocks negatively affect the British currency. At the moment, the pound is stuck in the low price range. The GBP/USD pair is trading near 1.2846–1.2847 on Wednesday, November 27. Experts believe that before the general election, the pair is unlikely to go beyond the current price range, limited to 1.2800-1.2900.
The British currency is currently experiencing serious volatility. Political fluctuations are not in vain for the pound, analysts emphasize. However, they are confident that in the medium term, sterling will perk up and conquer price peaks again, rushing to the cherished goal of 1.3000.
