24.10.201816:16 Forex Analysis & Reviews: Pound once again became a hostage of politics

Currently, investors are closely following the developments in the United Kingdom, trying to guess whether the post of Prime Minister Theresa May will remain.

Against this background, the pair GBP / USD has already slipped below three-week lows.

"We expect the pound to fall in price over the next two weeks. Therefore, we do not advise traders to keep a long position on the British currency in the hope of concluding an agreement on Brexit," said analysts at Nomura Holdings Inc.

"If the struggle for power inside the Conservative Party breaks out, the pound may collapse by another 1-2%," they added.

"We believe that any signs of exacerbating political risks in London may exacerbate concerns about the UK leaving the EU without a deal and thereby drowning a pound. We still hope that the parties will still be able to reach an agreement at the last moment, but now, we are taking an extremely cautious position with regard to the British currency," the specialists of Credit Agricole Group said.

"The picture that we can observe today in pound sterling, taking into account, its recent fall below $ 1.30, indicates that the course partially threatens the resignation of the British Prime Minister," experts of Mizuho Bank believe.