13.12.201914:19 Forex Analysis & Reviews: GBPUSD: Boris Johnson moves to the active action phase, pledging to leave the bloc by January 31, 2020

The euro remains in a narrow range, and bulls rushed to record several profits in the GBPUSD pair, which led to its downward correction. However, a triumphant victory for the Conservative Party will continue to support the pound, but much depends on how quickly and how actively British Prime Minister Boris Johnson acts.

During today's speech, the Prime Minister said that the implementation of Brexit is an indisputable decision of the British people, as his victory eliminated the threat of a second referendum on this topic. Johnson also promised to implement Brexit by January 31 without any "buts" and "ifs". As for the fears associated with the rupture of trade relations with the EU in the form that they are now, the Prime Minister promised to increase government spending to offset the consequences for the economy. Johnson also reiterated the importance of investing in the national health system and promised to increase spending on schools.

Let me remind you that as a result of the general elections to the UK Parliament, Boris Johnson's Conservative Party won a majority of 650 seats in the House of Commons. His party is projected to win 364 seats, 68 more than all other parties combined. A decisive majority leaves Johnson free to act, which will quickly ensure the passage in the parliament of his proposed version of the EU withdrawal agreement, which has been stalled throughout this year. The UK is expected to officially exit the bloc on January 31, 2020.

But it should be understood that the ratification of the agreement is only the beginning of a long road, which will be associated with the problems of reaching an agreement on future ties between the UK and the EU. Such problems will be settled by the end of 2020. However, the difficulties in signing the agreement on both sides will put pressure on the British pound, which has risen quite strongly in the last few months against the US dollar.

As for the technical picture of the GBPUSD pair, as noted above, any positive news related to Brexit will push the pound up to the area of the 40th figure. The breakout of today's high around 1.3520 will lead to new automatic purchases of the trading instrument, counting on the update of new levels in the area of 1.3605, 1.3690 and 1.3750. The downward correction in the pair will be limited by the strong support in the area of 1.3370, however, if it breaks, the major players can retreat to the lows in the area of 1.3310 and 1.3220, from where an attempt will be made to build the lower boundary of the medium-term upward trend.