Post-Boris Era in the UK Means a Lot for GBP

Post-Boris Era in the UK Means a Lot for GBP

2022-12-15 • Updated

“I want you to know how sad I am to be giving up the best job in the world,” – Boris Johnson said in front of the paparazzi and his colleagues before leaving the UK Prime Minister chair. He held the post for three years after Theresa May left in 2019 due to Brexit contradictions. Changes of such scale aren’t often seen in Europe, so it’s wise to break the situation down.

Why did Boris Johnson leave the post?

It all started with a no-confidence vote at the beginning of June. The UK Conservative party (Tory) criticized Johnson’s job for “perceived incompetency as a leader,” beginning the most significant turmoil in the newest history of Britain. Also, Johnson had a party during Covid-19 pandemic, which was totally unacceptable for a Prime Minister.

If Tory had been successful, Boris would have left much earlier. Here’s how the process works:


Source: BBC

However, Mr. Johnson received the support of 211 out of 359 members of the House of Commons (lower chamber of the UK parliament). The result means 59% of his members (MPs) supported Mr. Johnson.

The story doesn’t end here, though. Another round of problems for Boris started as he hired Chris Pincher as a deputy coordinator of the parliamentary faction. Earlier, Pinches was accused of sexual harassment, and Johnson knew it.

After the Chris designation, a 24-hour period of political turbulence began. Over 40 government resignations happened before Johnson decided to give up and leave the chair of Premier Minister. The general public supported the decision: Twitter is filled with cheers and glees ahead of the next PM election in autumn.

Mr. Boris and Tory in a nutshell

Boris Johnson was the UK Prime Minister and head of the conservative party for three years. The Tories, in turn, are the leading party in the UK, with the Liberal Democrats as the main rival. Usually, elections in the UK need to happen no more than five years apart. Unless an earlier one is called, the next election isn’t due until January 2025.

Boris Johnson could call an early election if he wanted (the law permits this), but now Mr. Johnson has resigned. After the conservative party chooses a new leader, he (or she) can call an early election if he (or she) wishes.

The pound feels sailed off on the news

Pound Sterling is rallying at the time of writing, although it is hard to ascertain just how much of the move is linked to the domestic political news or the broadly supportive global market.

The pair made a double divergence on the RSI. Also, we are close to the support trendline. Our outlook on the British pound is bullish. The currency may rise to the 1.2324 resistance. Also, it may soar higher if the next PM chair candidate is met with glee from the market participants.

GBPUSD daily chart

Resistance: 1.2324, 1.2700, 1.3000

Support: 1.1900, 1.1740


Do you want to get GBP updates Live? Subscribe to the @FBSAnalytics Telegram Channel where I post more daily trade ideas!


CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

CAD: Signs of Growth May Persist
CAD: Signs of Growth May Persist

Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera