The U.K. General Election will be held this coming Thursday. As of 5 December, New Statesman poll tracker tracks that the Conservative Party is leading at 42.4% while its closest rival, the Labour Party, is at 32.8%. Pound has been on a rally since the start of December due to the optimistic view that the Conservative Party stands a high chance of winning the general election. Against the U.S. dollar, pound strengthened for more than 200pips, breaking out of the 1-month range and reaching a level that was last touched 7 months ago.
GBP/USD is currently testing the resistance level of 1.31700. From now until this Thursday, any further optimism in the election may send GBP/USD breaking above this resistance level. Look for short-term buying opportunities if GBP/USD breaks above the resistance level due to optimism in the election while keeping in mind not to hold trades until the day of election in case of any unforeseen circumstances that may reverse the trend.
If the Conservative Party were to win the general election and should pound strengthen as a result, look for longer-term buying opportunities of GBP/USD.