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The pound has sharply grown against the US dollar amid increasing chances that Conservatives will be able to get a confident majority in the December elections in the UK.
The day before, the widely anticipated forecasting model of YouGov for the British parliamentary election was published. This model enjoys great confidence after it was able to accurately predict the "suspended" Parliament following the election in 2017.
This time, according to the analysis, the Conservative Party should form a majority government. The Tories are expected to receive 359 out of 650 seats, and the Laborites - 211.
If YouGov forecasts are confirmed, then this will be the best result for Conservatives since 1987.
A majority government would be a favorable election outcome and help dispel continuing uncertainty about the future prospects of Britain and Brexit.
In response to this news, the GBP/USD pair tested weekly highs around 1.2950 and is now trading around 1.2940.
Since the second half of October, the 1.2970 mark has been a strong resistance level, through which the pair has not managed to break up.
It is possible that GBP/USD will remain in the range of 1.2970–1.2800 until the election.
It is assumed that the confident victory of the Conservatives will allow the pair to break through the current resistance and reach the level of 1.3100. Otherwise, a decrease to 1.2750 will follow.
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