The British pound faces continued volatility against the US dollar as political uncertainty from a closely watched by-election dampens sentiment, according to DBS Group Research. Strategist Chang Wei Liang notes that GBP/USD has eased toward the 1.32 level and expects choppy trading to persist as Labour’s Andy Burnham leads in the Makerfield by-election. The political development is adding pressure to sterling at a time when currency markets remain sensitive to UK domestic developments.
Traders and forex brokers should prepare for unstable price action in cable as by-election results approach, with the pair hovering near key technical support at 1.32. The weakness comes amid broader concerns about UK political direction and potential policy shifts depending on the by-election outcome. Currency volatility could impact hedging strategies and derivative pricing for institutions with sterling exposure.
FXnCO Insight
Monitor GBP/USD closely around the 1.32 support level and consider widening stop-losses or reducing position sizes until by-election uncertainty clears.
Source: FXStreet