GBPUSD seems to have found support above 1.47 in recent days but the uncertain outcome of the UK’s general election means this is a currency pair still under immense pressure. Implied volatility in the options market has reached three year highs and Nick Beecroft, the Chairman of Saxo Capital Markets, says that could get worse should negotiations to form the next British government drag on.

Nick says being ‘long gamma’ looks attractive right now as the markets are likely to remain choppy for the foreseeable future. And he can also see how cable could drop to 1.25, as suggested by Morgan Stanley in its most bear-case scenario, should a weak administration collapse before Christmas.