Boris Johnson’s election win reduced political uncertainty near the end of a challenging year. However, Britain has a huge decision to make by the end of January. This should keep any upside limited to previously taken-out levels until Brexit gives way to significant flows.
GBP/USD Tests Golden Ratio Near 1.33
Recent political developments have helped the pound move higher over the past few trading sessions, trading near 2018 highs. The correction down to 1.29 could, however, weigh on cable more than expected.
With 1.3285 tested, bears could lead the markets lower towards 1.29 once again. This assumes that 1.33 round resistance holds firm in case of a bullish takeover attempt.
