- The prime minister is expected to announce the resignation on Thursday.
- The pound gains ground in the market after the news.
- GBP/USD rises to two-day highs.
The GBP/USD returned above 1.2000 and climbed to 1.2022, the highest level in two days after learning that the Prime Minister of the United Kingdom, Boris Johnson will resign from office. The pound rose modestly in the market after the news broke.
The pair was already trading in positive territory on Thursday amid widespread dollar weakness and gained momentum after British government officials said Johnson will step down as leader of the Conservative Party.
The unknown is whether he will be able to continue as prime minister until October when the election of party authorities is held. The spokesman said Johnson will give a “statement to the country today.”
Above 1.1980, bullish
In the very short term, the break of 1.1980 left GBP/USD strengthened. The pair is recovering after falling to 1.1874 on Wednesday, the new low in years. The current bounce seems to be running out of steam, but if it continues above the 1.1980 zone, the bias will favor the pound. Further up, resistance appears at 1.2040 and then at 1.2085.
Technical levels
Source: Fx Street
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