Since Teresa May resigned as Prime Minister, what has changed regarding Brexit uncertainty?
As Boris Johnson appears to be the odds on favourite at this stage of replacing May, is that likely to lead to GBP strength or weakness? Mr. Johnson is portrayed as a hard Brexiteer which suggests GBP weakness until more is known.
Today as the GBPUSD made a brief new high for the day early in the U.S. session overlap and failed, a short was taken risking 19 pips for a potential 54 pips to our daily target at 1.2686.
Price moved slightly lower then sideways before breaking quickly to the downside reaching our target at the end of the London session.
If price continues lower, look for buyers near the May 31st low 1.2558 area and beneath that, near 1.2500 for now.
Good luck with your trading!