Breaking: UK PM Theresa May to step down on June 7th, GBP/USD temporarily rises above 1.2700 before falling

Yohay Elam FXStreet

UK Prime Minister Theresa May has just announced she will be stepping down as Conservative Party leader on June 7th, paving the way for a new PM probably in July. The leadership contest will begin on the following week. Former foreign minister Boris Johnson is the leading candidate to replace her, and he is gathering momentum.

GBP/USD is trading around 1.2700, extending the recovery it enjoys due to USD weakness. Sterling seems to be buying the fact after selling the rumor. It hit a high at 1.2708 before falling back to struggling around 1.2700.

The PM has been under immense pressure to quit after her new Brexit deal had triggered angry responses from Brexit-supporting members that were furious that an option to hold a second referendum was included there.

Beforehand, May's Brexit deal was rejected three times by parliament. In her farewell speech, the outgoing PM is listing her achievements on housing, the environment, mental health, and other matters. She says that her successor will have to find a way to muster a majority in parliament. She ends her speech with a broken voice.

Here are the latest moves on the four-hour chart:

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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