GBP/USD struggles to extend latest recovery as Brexit party leads in UK’s EU election
|- Theresa May’s resignation couldn’t please the GBP buyers for long as disappointments from Brexit Party’s lead are on the rise.
- Political news reports to gain major importance amid the UK holiday.
With the early results of Britain’s EU election favoring Brexit party, the GBP/USD pair seems to fail to stretch recent recovery as it seesaws near 1.2720 during the early Asian session on Monday.
While news that the Brexit Party received the highest number of votes in Hillingdon triggered initial setback for the ruling Conservative party, that is already going through a lot of noise, BBC’s polls signaling Tories to get lesser acceptance added further pessimism for the British lawmakers.
The present Tory leader and UK Prime Minister, Theresa May, has recently announced her resignation for June 06. This initially helped the British Pound (GBP) off-late as political uncertainty surrounding Brexit got slight relief as many among the UK policymakers didn’t get well with the PM May.
However, the optimism is less likely to remain for long as not only search for the next PM, wherein Boris Johnson is a lead, is still to deliver results but the rising popularity of Brexit party increases the uncertainty.
Brexit party is a new one on the ground formed by former UKIP leader Nigel Farage. The party respects more distance from the EU and also supports no-deal Brexit, if needed.
It should also be noted that the UK markets are closed on Monday due to Spring Bank Holiday.
Technical Analysis
The three-week-long descending trend-line and February lows highlight 1.2770 as near-term important resistance for the pair, a break of which could propel prices to 1.2800.
Meanwhile, 1.2680 and 1.2600 are likely nearby supports for the pair with 1.2480 and January 2018 bottom around 1.2430 being expected targets for bears then after.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.