The British Pound (GBPUSD) just added 72.5 pips in the last 20 minutes, as Nigel Farage, the leader for the UK Brexit Party, said that they would not contest the 317 seats that the Tory party won in 2017. The reason for doing this to help and not challenge the Tory party, and instead focus on grabbing seats from the opposition that is mostly against the hard type of Brexit that Nigel Farage is seeking.
Nigel Farage said that if they put up candidates throughout the country, it would give the Liberal democrats more “gains.”
As for the GBPUSD pair, the price stopped short of trading above the November 5 high of 1.2920, and the trend remains mildly bearish for now. For the trend to firmly turn bullish the price would probably need to break the October high of 1.3017, and if this were to happen, the price might reach the psychological level of 1.31, followed by the March 2019 high of 1.3179.
For now, as long as GBPUSD trades below the 1.2933 level, I will treat the trend as bearish and suspect the price might reach the 1.28 level, followed by the 1.26 level in the next few days.