GBPUSD catches a bid as PM Johnson resigns
.png)
Sterling appreciated in morning trade in anticipation of PM Johnson officially announcing his resignation; most likely before noon local time. The 15m GBPUSD chart shows a higher trough as its momentum oscillator turns up (red dashed vertical). We now look to see if this has laid a platform for the next higher peak in this time frame. His resignation means a 4th leader within six years for the UK, once the politics have run their course.
This week has seen over 50 tory resignations since Tuesday in protest of Johnson's less than satisfactory handling of the Chris Pincher scandal. This outrage was the last straw in a tenure marred by controversies, culminating with the newly appointed Chancellor Nadhim Zahawi telling in a letter on social media that the PM should resign.
.png)
The current political crisis has added volatility to GBPUSD. However, we urge caution. The longer-term trend is down, with the weekly chart showing lower peaks followed by lower troughs. Moreover, the longer-term momentum is firmly down (green rectangle). Given this, any rallies may be targets for short-sellers.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.