GBP/USD Takes A Hit At 1.33000!
Leading on from last weeks momentum, we could slowly see the come back once more for GBP/USD. We had crossed over our weekly resistance and saw price pushing past our daily resistance at 1.33100. However, breaking news from the UK house of parliament as Brexit minister Boris Johnson quits his position! This is the second resignation of the day leaving Brexit plans in a mess.
The impact was almost instant as we saw GBP pairs fall over 100+ pips, leaving it under further pressure against its major rivals. Now that we have let the dust settle a few hours, to the surprise of many, we are seeing a pullback after the news hit! GBP/JPY pulling up half its fallen position with GBP/USD possibly clawing its way back too.
Technically we are continuously testing the 1.32500 weekly level, if the price can remain above this support we could see this pair fall back into bullish mode! However, with pressure still on the impact fundamentally we could see some volatility yet for maybe a downside break? We would suggest waiting for the daily candlestick to close for an indication for future movement this week.