The British currency showed miracles of growth on the eve of the election. Pound increased to a maximum over the past eight months and held out at these heights for a while, and then began to decline. To the next height, the pound raised confidence in the victory of the British Conservative Party, led by Prime Minister Boris Johnson.
Most experts agree that the victory of the Conservative Party was the catalyst for a powerful growth wave of the GBP/USD pair. It was previously noted that the breakdown of the 1.3220 bar will draw new large players into the market funnel, thanks to which the British currency will reach a new level. These forecasts came true: on Thursday, December 12, pound reached 1.3220, and the GBP / USD pair began a triumphant ascent.
The rise of the pair was uneven. In the process of growth, there were peculiar "pits" when the GBP/USD pair sank to extremely low levels. Moreover, yesterday's rise of the pound was slightly overshadowed by a sudden decline to the level of 1.3121, but later on, the GBP/USD pair leveled off.
On Friday morning, December 13, the pound greeted with a victory song. In one fell swoop, GBP/USD pair overcame a number of previously inaccessible peaks and soared to around 1.3500. Subsequently, the pair slowed down a little, dropping to 1.3472, but the taste of triumph has not lost.
After some time, the GBP/USD pair approached the range of 1.3452–1.3453, showing an obvious upward trend. According to analysts, the pair will be in an upward trend in the near future. Moreover, short-term subsidence of the GBP/USD pair will not prevent the current trend, for example, the current decline to the level of 1.3437. Experts are sure that after a while the pair will restore its position.
Conservative leadership in the current election serves as a powerful nourishment for the pound, experts emphasize. As for their rivals, this will be the most deafening collapse in 40 years if it is impossible for the members of the Labor Party to get a majority of the votes in parliament. It was previously noted that the victory of the Conservatives will be the first step towards resolving Britain's protracted withdrawal from the European Union. In such a situation, the probability of a "soft" Brexit grows significantly, analysts emphasize. Meanwhile, similar political "swings" cannot but affect the dynamics of the pound, which has experienced tremendous pressure in the past few weeks.
The path of the British currency to victory was not easy. The pound had to overcome many obstacles, repeatedly declining from the conquered peaks and then rise again. Since the decision to leave Britain from the EU, the pound has fallen from 1.5000 to the unthinkable 1.1450. In the future, the "Briton" was around 1.3000 for a long time, cherishing the hope for an orderly Brexit. Now, these expectations can become a reality, thanks to which the British currency will find the long-awaited peace and strengthen its position.
