The British pound rose to a 6-month high on optimism that the UK will leave the EU with a Brexit deal in hand. This comes as PM Johnson urged fellow party members to back the Brexit deal ahead of the elections.
With the odds in favor of Johnson’s Conservative party winning the re-election bid, it also raises hopes for an orderly departure from the EU. According to the new deadline, the UK is set to leave the EU on the 31 st of January 2020.
Can GBP/USD Break Past the Resistance?
The currency pair’s gains have pushed it higher to test the resistance level of 1.2967. This marks the upper end of the corridor between 1.2967 and 1.2865.
A breakout above this level is required to confirm further upside. Alternatively, if the GBPUSD retraces the gains, then watch for a potential right shoulder to form in the evolving inverse head and shoulders patterns at the current levels.