The Prime Minister of the United Kingdom Boris Johnson announced on Friday that the UK would leave the EU by January 31. The announcement was made, as his Conservative party won the election with a majority not seen since the 1980s.
The GBP surged on the announcement, as it brought back certainty of the country's future.
On Thursday, December 12, the British Pound appreciated 464 pips or 3.56% against the US Dollar.
The advance was driven by the UK Parliamentary Elections. The Prime Minister Boris Johnson's Conservative Party won 364 seats. This is the biggest victory of the Conservatives since Margaret Thatcher.
The Prime Minister promised that the UK government would get Brexit done on time on January 31. However, analysts think that the government would try to keep a no-deal Brexit option for as long as possible to reach the trade agreement with the EU.
Economic Calendar
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT. A move from 10.5 to 87.4 pips can be expected.Next week, the data that might impact the GBP/USD is set to start on Tuesday. The UK Average Earnings Index is set to be published at 09:30 GMT. This event has caused moves from 11.0 to 22.9 pips since July 2019.
On Wednesday, the UK CPI is scheduled to be released at 09:30 GMT. This event could create a move from 13.6 to 20.8 pips.
On Thursday, at 09:30 GMT, the United Kingdom Retail Sales data will be made public. The Retail Sales could cause a move from 12.0 to 15.9.
On the same day, at 12:00 GMT, the event of the week for the Pound will take place. The Bank of England Official Bank Rate and the Bank of England Monetary Policy Summary will be published.
On Friday, two data release should be watched by the GBP/USD traders. The UK Current Account with 8.3 to 38.4 pips at 09:30 GMT and the US Final GDP with 8.1 to 52.0 pips at 13:30 GMT.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
GBP/USD short-term review
The election result surge was stopped by the weekly R3 simple pivot point at 1.3510. Most likely, the 1.3500 mark impacted the rate more than the pivot point. Namely, the 1.3500 triggered sell orders and the 1.3510 was where the direction of the rate reversed.On Friday, the rate was consolidating by declining. By the middle of Friday's London trading, the rate had reached below the 1.3400 level. In general, the decline was expected to decline until the rate is approached by the hourly simple moving averages. With the approach of the SMAs, the overbought pressure would weaken.
Hourly Chart
On the daily candle chart, the rate's jump was consistent with the channel up pattern. Note on the pattern that the 1.3510 level is the last technical resistance level before the upper trend line of the pattern near 1.3700.
Daily chart
Meanwhile, trader orders were set to sell. In the 100-pip range, 57% of orders were sell and 43% were to buy.