Breaking: GBP/USD jumps over 1.29 as Brexit Party abandons 43 additional seats, assisting Conservatives

Yohay Elam FXStreet

Nigel Farage's Brexit Party has decided to step down from 43 additional constituencies where Labour won, facilitating the way for a Conservative majority. Markets prefer an outright Tory majority that will ratify the Brexit deal and enact market-friendly policies.

The final lists for the elections have been published, and they have shown that Farage's right-wing outfit has abandoned seats where the opposition party won in 2017, or at least where the Conservative Party came second. Prime Minister Boris Johnson's odds of winning seem to have increased.

GBP/USD has jumped above 1.29, the highest since early November. On its way up, sterling has broken above the downtrend resistance line that has accompanied it since late October. The next targets are 1.2950, 1.2980, and 1.3013. Support awaits at 1.29, 1.2820, and 1.2760. Momentum on the four-hour chart remains to the upside and the pound has previously broken above the 50, 100, and 200 Simple Moving Averages.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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