FX.co ★ Forecast for GBP / USD on May 27, 2019

GBP / USD

Theresa May announced her resignation on Friday. In the UK, the process of choosing a new Prime Minister is starting. The first stage of which will be the selection of the leader of the conservative party. The undisputed leader for the post of prime minister is the former foreign minister and Eurosceptic Boris Johnson. He is followed by Dominic Raab - former Brexit Affairs Minister, while in third place is also the former Minister of Agriculture and Eurosceptic Michael Gove, who was fired by Theresa May before. The final selection of a new prime minister is still about two months. The overall situation for the pound is aggravated by the victory of the party "Brexit" in the elections to the European Parliament.

On the daily chart, the price is testing the Fibonacci retracement level of 23.6%, while the Marlin oscillator signal line shows strong growth. Meanwhile, on the four-hour chart, the price approached the MACD resistance line, while the Marlin oscillator does not show a reversal. Perhaps, the pound will still grow to the Fibonacci level of 38.2% (1.2822) within two to three days, but it may also take a waiting position under the resistance of the nested line in the price channel on the daily chart. Today is a UK holiday and investors have time to think. Prolonged reflection will create technical prerequisites for turning the price down.