FX.co ★ X hour for the pound: volatility intensifies

The British currency is at the forefront of controversy. On the one hand, it is trying to hold on to its positions, and on the other, it is experiencing tremendous tension in connection with the upcoming elections. The market is on the same wavelength with the pound, paused in anticipation of changes in the political arena of Great Britain.

The epicenter of events at the moment are the elections that will be held in the country on December 12. On Tuesday, December 10, reports were published showing the state of the UK economy. Experts recorded the absence of any significant changes, including economic growth. According to analysts, this indicates problems associated with Brexit. At the same time, the pound completely ignored these data, focusing on the upcoming results of opinion polls and the expectation of elections.

It is expected that a new government will be formed during the elections. Experts believe that Prime Minister Boris Johnson will remain in his post and head the government of Conservatives. At the same time, analysts recall that the Conservative Party will require a majority in Parliament to resolve the situation with the Brexit. In the event of the implementation of such a scenario, Johnson will be able to agree on a deal with the EU in a short time and withdraw Great Britain from the European Union by January 31, 2020. According to experts, such a development of events for Great Britain will be a long-awaited way out of the political impasse in which the country has been for more than two years.

Current turmoil and pre-election tension do not reflect well on the dynamics of the pound. Sterling keeps the bar set, fueled by the results of public opinion, confident in the majority vote of the ruling Conservative Party of Great Britain. On Tuesday, the pound tried to maintain its position, but on Wednesday, December 11, it became clear that this attempt failed. Experts expect a downward correction of the GBP/USD pair, which can be stopped by a large support level of 1.3090.

The British currency confidently conquered peak after peak on Tuesday, December 10. The GBP/USD pair ran in the range of 1.3172-1.3173, with attempts to move higher.

At some point, the pair managed to reach 1.3180, but this turned out to be the highest level. Subsequently, the pound began a downward movement, and the GBP/USD pair lost its advantages.

The GBP/USD pair began on a minor note this morning, showing a significant decrease to levels of 1.3122-1.3123. The pair's further trend was downward.

The pair went to the levels of 1.3115-1.3116 in an effort to find the bottom. Now the pair runs in this range, trying to get out of tight boundaries.

Many experts believe that after the election the situation will not be in favor of the pound. Sterling can significantly subside, and it will take a long time to restore it. However, a number of analysts refrain from negative forecasts, preferring to trust the British currency, which has repeatedly demonstrated stability.