GBPUSD shows signs of strength as PM Truss resigns
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UK Prime Minister Liz Truss announced her resignation today. A run on British gilts and volatility in GBPUSD has primarily defined her six weeks in office following a failed gamble at expansionary fiscal policy and trickle-down economics.
Her resignation comes less than a week after she fired her Chancellor of the Exchequer, Kwasi Kwarteng. However, his replacement, Jeremy Hunt, quickly reversed the disastrous mini-budget tax cuts, which helped restore calm but made Truss's campaign promises unattainable.
To this end, in her resignation announcement Truss said, "I cannot deliver the mandate on which I was elected by the Conservative Party."
Since the announcement, GBPUSD has attempted to rally but reacted off the 1.1300 level (blue arrow). Its hourly EMAs and stochastic are positive (black ellipses). If the indicator can move into its upper quintile and maintain (green rectangle), an underlying bullish momentum will be present. However, if the stochastic rolls over, the positivity will likely wane.
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.
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