GBPUSD traded marginally higher on the news that Boris Johnson will be the next Tory leader and UK PM. The muted reaction in GBPUSD shows that the market had already discounted Mr. Johnson’s victory.
As for the technical outlook for GBPUSD, it remains bearish as the price has been trading lower since March when it reached 1.3379, and the last important swing high is the July 15 high of 1.2582. Below the July 15 high, the GBPUSD is at risk of trading to the April 2017 low of 1.2364, followed by the March 2017 low of 1.2106. The outlook is bearish as it is likely that there will be some hard negotiations between Westminster and Brussels, and Boris Johnson has not ruled out a hard Brexit.
For the trend to turn bullish the price would need to take out the July 15 high, and on that happening the price might target the June high of 1.2780.
Johnson recived 92,53 votes vs. Hunt’s 46,456. He is expected to become the UK’s next prime minister after Theresa May resignes to the Queen tomorrow.Don’t miss a beat! Follow us on Twitter.