Following the tragic events in London over the weekend the pound lost ground across the board, with the GBP/USD cross slipping back to $1.2850.For the best dollar exchange rates click here.
However, the pound has managed to bounce back over the course of today after the latest opinion poll showed the Conservative party holding an eleven percentage point lead over the Labour opposition.
As you can see from the graph below the pound has risen nearly a cent today after markets reacted positively to the latest opinion poll released by ICM. However, with only a few days until voting takes place we could easily see the pound come back under pressure.
GBP/USD graph
If we see other polls suggesting a tighter result as we get closer to Thursday, then the pound could continue to fall.
The result of the election could have very different effects on the value of Sterling. If the Conservatives win with the majority, it is likely we will see the GBP/USD cross push back towards $1.30.
However, if we wake up on Friday to a Labour victory or a hung parliament then the pound could go into free-fall, potentially leaving the GBP/USD cross at the levels we witnessed back in March ($1.2150).
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