GBPUSD fell to a close to four-month low and is currently trading below 1.28. It seems that the pressure on the Prime Minister Theresa May did give its ‘fruits’ - according to British media reports, the politician announced that she would resign next month, immediately after the last vote on the EU deal with Brexit.
On the eve, the pair GBPUSD fell by 0.4% to 1.2790, immediately after it became known about the likely resignation of May. According to British media reports, the Prime Minister will not wait for the next parliamentary elections and will resign regardless of how the Parliament votes on the deal with the EU.
Boris Johnson, who had previously left the post of foreign minister amid disagreements with the prime minister just over questions about Brexit, has already announced that he will fight for the vacant position. Johnson previously stated that he is a supporter of the postponement of Brexit.
The likelihood of a British exit from the EU in chaos seems to be increasing every day. Only in May, the pound lost more than 1% of its value, since interparty negotiations on a deal did not lead to anything. Market analysts expect a higher likelihood of a UK exit from the EU without an agreement with the bloc.
Recall that the proposed Brexit deal with the EU was rejected by the British parliament three times. In the first week of June, there will be another vote on this document, perhaps the last.
Opposition Labor Party, along with Euro-skeptics in the ruling party, as well as the Northern Irish allies, does not hide the fact that they plan to once again reject the proposed version of the agreement with the European Union.
Everything indicates that in the coming weeks the policy will play, perhaps a key role in the behavior of the British currency. The pound will be subject to high volatility, and its prospects against the backdrop of the resignation of Theresa May look pessimistic.
Forex trading recommendations:
GBPUSD: Sell. Entry point – 1, 2785. Take Profit – 1, 2753. Stop Loss – 1, 2819.
USDCAD: Buy. Entry point – 1, 3467. Take Profit – 1, 3484. Stop Loss – 1, 3437.
EURJPY: Buy. Entry point – 122, 62. Take Profit – 122, 88. Stop Loss – 122, 18.
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