However, he added there is downside risk for the U.K. currency if the result is not much different from the 2015 General Election, or if the result is a hung Parliament with no party having a majority.
“Knee-jerk GBP reaction would almost certainly be negative since it would be seen as further weakening an already weak negotiating position for the U.K. government and with that the risk of ‘no deal’ (with the European Union),” Attrill said.
The U.K.’s currency is experiencing volatility as the polls between the two major parties narrow.
Sterling was trading lower around the $1.286 level most of Monday morning, hit by a reading for May’s U.K. services PMI (Purchasing Managers’ Index) which missed expectations, but the currency later rose to hit a day’s high of $1.2911 after the release of an ICM poll showing the ruling Conservative Party leading by 11 points.
However, other polls have offered different opinions; eight polls were released over the weekend, with the Conservative’s lead varying from 1 point to 12 points. The pound’s trade-weighted value has fallen by 3 percent in less than four weeks as U.K. Prime Minister Theresa May’s campaign has hit problems, such as receiving criticism for her manifesto proposals, according to Reuters.