GBP/USD Makes a Slight Climb Higher Despite No-Deal Brexit - Forex News by FX Leaders
GBP/USD

GBP/USD Makes a Slight Climb Higher Despite No-Deal Brexit

Posted Thursday, July 25, 2019 by
Arslan Butt • 1 min read

After weeks of uncertainty, Boris Johnson finally took over as UK’s next PM. While this may not bode well for Brexit, with his interest in taking Britain out of the EU without a deal, it has helped strengthen GBP/USD a little. The Cable finally climbed above the 1.25 level on Wednesday but has weakened once again to touch 1.247 at the time of writing.

The brief climb could have been caused due to traders shorting their positions after the results were announced, driven by a “buy the rumor, sell the fact” sentiment. A no-deal Brexit continues to weigh on the markets, with fears that the UK economy could dive into recession in such a scenario.

Confusion reigns high, with Boris Johnson determined to take Britain out of the EU on October 31, with or without a deal. To this effect, he has sacked over half the UK cabinet, who were known supporters of Theresa May, and replacing them with right-wing pro-Brexit ministers.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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