GBP/USD – Pound Soars as Conservatives Cruise to Majority

Boris Johnson has led the Conservatives to a landslide election victory, and the British pound has climbed over 2 percent, as the markets cheered the results. The U.S. and China have reached a trade deal in principle, and the Australian dollar and Chinese yuan responded with sharp gains.
Kenny Fisher

GBP/USD is sharply higher in Friday trade. Currently, the pair is trading at 1.3437, up 2.03% on the day.

Boris Wins Big

Prime Minister Boris Johnson led his Conservative party to a resounding win in the hard-fought British election. Early election results indicated the Tories had won 368 seats, a comfortable majority of the 650 seats in parliament. The Labor party managed to win only 203 seats, the party’s worst showing since 1935.  As one television reporter noted, years of infighting over Brexit had led to ‘Brexhaustion’, and an exasperated electorate gave two thumbs up to the Conservatives’ simple, yet effective slogan of “Get Brexit Done”.

The Pound

The markets were delighted with the election results, as the pound climbed over 2 percent. The currency briefly rose above the 1.35 line, its highest level since May 2018. We could see some retracing by GBP/USD after such sharp gains due to profit taking, but for now, it’s euphoria in the markets.

Technical Analysis

GBP/USD posted huge gains late on Thursday, blowing resistance lines out of the water. The pair tested resistance at 1.35 but has retracted. On the downside, there is support at 1.3380.

GBP/USD 4-Hour Chart


Pacific Currencies – Summary


Trade Agreement Sends Yuan Higher

USD/CNY has steadied on Friday, after posting sharp losses on Thursday. The pair has fallen below the 7.000 for the first time since early November. The yuan jumped 0.80% on Thursday, after the announcement that the U.S. and China had reached a limited trade agreement in principle. This is a very significant development, and will likely mean the elimination or reduction of tariffs between the two countries.


AUD/USD has posted gains for a third straight day, and is up 1.2% this week. Currently, the pair is trading at 0.6922, up 0.19% on the day. The announcement that the U.S. and China have reached a trade deal in principle has helped boost the Aussie.


NZD/USD is unchanged on Friday, trading at 0.6619. The pair has gained 0.8% this week and is currently at its highest level since late July.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.