The British pound was trading steady, holding out near the eight-month high. However, volatility could rise as the UK heads to the polls today.
Although the Conservative party is expected to win, the narrowing of the lead by the Labor party remains a risk. The UK is set to leave the EU on January 31st. Ahead of this, the Conservative party needs a majority win to proceed with the Brexit plan.
GBP/USD Volatility to Rise
The currency pair has already posted an impressive rally. The risks from the current highs remain mixed. There is scope for a correction in the near term. If the support at 1.3100 breaks, the GBP/USD could be looking to post a correction to 1.2960. To the upside, further gains could push the GBPUSD to the 1.3200 handle.
