Binary options traders typically buy a stock when it eclipses the 52-week high, or is rising in that direction, and sell a stock when it plunges beneath the 52-week low, or is trending in that direction. Currently, HSBC Holdings PLC is extremely bullish, as it is pushing against its 52-week high of $44.44 per share. The 52-week low of this banking stock is $28.62 per share. Analysts are less optimistic about the long-term prospects of HSBC Holdings PLC, given that the 1-year target estimate price is $38.96 per share.

Over the past 3 years between 2014 and 2016, revenues have declined from $90.84 billion to $72.44 billion. Earnings have also plunged from $14.71 billion to $3.45 billion in that time. Nonetheless, the stock remains a clear buy prospect, with Thomson Reuters analysts assigning a rating of 2.0 to the stock (1.0 represents a strong buy and 5.0 represents a sell). As far as trading decisions for this current week go, the stock remains bullish. For starters, HSBC does not anticipate a surprise victory for Labour, and that means that the status quo will likely remain.

HSBC: “Polls supportive of a Tory victory on June 8, 2017”

According to analysts from the bank, a rather sombre mood has gripped UK markets. This makes sense given the recent spate of terror attacks in the run-up to the election. Nonetheless, HSBC analysts point to a range of polls which give the ruling Tories a slim advantage over the opposition. On the one end of the spectrum, ComRes has the Tories 12 points ahead of Labour, while on the other, Surveytion has them 1 point ahead.

May’s Lead is Shrinking but Conservatives Remain Ahead 

HSBC has been quick to point out that when the snap election was called in April 2017, Prime Minister May enjoyed a comfortable lead of 23 percentage points in the national polls. That has been whittled away significantly. An average of the last 15 polls indicates that one week out, the Tories were just 7 percentage points ahead of Labour. Currently, the conservatives enjoy a 17-seat majority in parliament, but if the polls are correct this could increase significantly to 50 or 70 seats.

How will the GBP Be Impacted by the Election Outcome?

HSBC analysts also weighed in on the repercussions of the UK general election on the currency. There are 3 possible outcomes: a Labour victory, a Tory victory without an absolute majority, and a Tory victory with an absolute majority.

HSBC believes that a Labour victory would initially be bearish for the GBP, but could swing if the party’s manifesto is pro-growth. A victory for Labour may also mean that a soft Brexit will take place.

Scenario #2 – a Tory victory without an absolute majority could result in a hung parliament. That would certainly not be good news for the UK political system and would be exceptionally bearish for the pound. In such a scenario, binary options currency traders would place put options on the pound. Medium-term, a hung parliament could have bullish or bearish connotations for the GBP.

The last possible outcome is an absolute majority for the Conservative party. This would initially be bullish for the pound, depending on the nature of the Brexit that Prime Minister May decides to pursue. In total, 650 districts across the United Kingdom will elect representatives for the House of Commons. The results should be available soon after the polls close at 10 PM on Thursday.