Credit: Jaco van den Berg
Boris Johnson in Downing Street.
Boris Johnson has been confirmed as the next Prime Minister of the United Kingdom.
What does this mean for the pound? Leading up to the election there has certainly been a lot of uncertainty surrounding Boris Johnson in the role, this has been made evident in the recent decline we have seen in the GBP/USD. With a reversal pattern emerging we may see an upward trend. Perhaps faith in the newly appointed Prime Minister has been restored.
Technical Analysis: GBP/USD
Looking at the technical, one can see a downward trend, ending in a clear Head and Shoulders pattern. This pattern commonly occurs at a trend reversal point.
If the pattern unfolds we could see a Bullish trend starting, potentially climbing to the Neckline.
However, if prices continue on the downward trend and break below the first Shoulder support level, and even more so below the secondary support level, the Head, at 1.23900, we can expect to see a continues decline for the pound versus the USD (GBP/USD)