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GBP/USD Forecast: Pound tests key resistance, UK PM Johnson expected to resign
GBP/USD has reversed its direction and climbed toward the 1.2000 area after having slumped to its lowest level in more than a year at 1.1876 on Wednesday. The positive shift witnessed in risk sentiment helps the pair preserve its recovery momentum and buyers could remain interested in case 1.2000 turns into support.
Earlier in the day, several news outlets, including the BBC, reported that British Prime Minister Boris Johnson is planning to announce his resignation on Thursday. Johnson is expected to remain in his position until a new leader for the Conservative Party is selected in late summer or early fall. Read more …
GBP/USD sticks to modest recovery gains above mid-1.1900s, upside potential seems limited
The GBP/USD pair gained some positive traction on Thursday and moved further away from its lowest level since March 2020, around the 1.1875 region touched the previous day. The pair maintained its bid tone through the early European session and was last seen trading near the daily high, just above the mid-1.1900s.
A slight improvement in global risk sentiment prompted some profit-taking by traders of the safe-haven US dollar, especially after the recent strong bullish run to a two-decade high. This, in turn, extended some support to the GBP/USD pair, though a combination of factors might hold back bulls from placing aggressive bets. Read more …
GBP/USD: Recovery remains capped below 1.2000 on Downing Street drama
GBP/USD is preserving a major part of the intraday gains in the European session this Thursday, having found buyers once again near 1.1950.
Cable extended its recovery from 28-month lows of 1.1876 earlier in the day and almost tested the 1.2000 psychological mark before running into fresh offers. The pound was hit by news that UK Prime Minister Boris Johnson is set to announce his resignation. Johnson received another blow after Home Secretary Priti Patel joined the mutiny and demanded his resignation. Also, the newly appointed Finance Minister Nadhim Zahawi said that “PM Johnson Must Go.” Read more …