Boris Johnson won the first vote by a huge margin and is looking to be the next conservative leader in the UK, but nothing is set in stone yet and that uncertainty continues to hunt GBP. As long as short-term important support at 136.96 remain unbroken, we will continue to slightly favor a rally above minor resistance at 137.79 soon for a rally towards 139.85 and 141.40.

That said, we are painfully aware, that a break below support at 136.96 will open for more downside pressure towards 134.52 before a possible completion of wave 2 can be expected.

R3: 138.65

R2: 138.33

R1: 137.53

Pivot: 137.53

S1: 137.28

S2: 136.96

S3: 136.56

Trading recommendation:

We are long GBP from 137.50 with our stop placed at 136.90