From BTMU:

BTMU FX Strategy Research argues that the GBP bounce in reaction to the UK snap elections will prove more sustainable and is more than just a position squeeze in a continued GBP bear market.

In particular, BTMU argues that this decision will in fact shift the markets' focus away from the probability of a 'Hard Brexit' and an easing of those concerns can propel the pound further higher.

"If our interpretation is correct, the reasons for buying the pound are even more compelling. This snap election would therefore mean that the UK government is in fact shifting to a more balanced approach in regard to Brexit and not to the 'Hard Brexit' stance many are currently citing for the government's reason for calling this election," BTMU argues.

As such, BTMU suspects the calling of this election will slowly see this conclusion shift and the consequence of that should be GBP/USD moving back into the 1.3000-1.3500 trading range.

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