Following weeks of voting, Boris Johnson is set to become the next Prime minister of the United Kingdom. Having won the UK conservative party leadership vote, Johnson is set to replace PM May who resigned after failing to deliver a Brexit deal. Elsewhere, the BoE held its monetary policy meeting but left the interest rates unchanged. The sterling was unmoved on the outcome of the meeting.
GBPUSD Could Continue Higher
The GBPUSD currency pair continued to maintain its gains over the week. Price is testing the resistance level of 1.2716 at the time of writing. A breakout above this level is required to keep the momentum going. The upside bias comes on the bullish divergence seen on the daily chart. A close above 1.2716 could confirm this view as GBPUSD will be targeting 1.2895 next.
