Despite the GBP/USD correcting to the 1.3235 support in the morning trading today, Tuesday, the general trend of the pair is still up. Profit-taking sales increased after the pair jumped to the 1.3514 resistance, the highest level since May 2018, after the announcement of a major victory for the Conservative Party in the general elections that took place in the country last Thursday, which will support facilitating the task of Boris Johnson in passing the Brexit Agreement in order to bring the United Kingdom out of the European Union by the deadline of January 31, 2020.
After the landslide victory, Boris Johnson's activity increased. He talked about trade with US President Donald Trump and made a loud speech to new lawmakers in the Conservative Party. Members of Parliament from all parties will be sworn in today, Tuesday, the first day of the new session in Parliament. The Conservatives, led by Johnson, secured a larger-than-expected majority in national elections last week, spurring his efforts to secure parliament's approval of the Brexit deal he signed with the European Union. The Conservatives have now won 365 of the 650 seats in the House of Commons.
Driven by a decisive victory, Johnson plans to move quickly on his campaign slogan "to end Britain's exit from the European Union". This means ensuring that the draft Brexit Agreement is passed in time for the UK to complete its historic departure from the European Union by January 31.
A spokesman for Johnson, James Slack, said the government would present the European withdrawal bill on Friday. It will be up to the Speaker of the House of Commons to determine whether Parliament may be ready for the first major vote on the bill on the same day or wait until early January after the Christmas holidays. Britain's exit from the European Union is expected to gain strong support in Parliament because of the strong new Conservative majority.
According to the technical analysis of the pair: The GBP/USD general trend is still bullish and after the conservatives won and their determination to pass the Brexit, it is better to buy the pair from each downside level. The closest support levels for the pair are currently at 1.3245, 1.3170 and 1.3100, respectively. On the upside, stability above 1.3300 resistance will pave the way for the pair to test new highs. It should be borne in mind that the sterling will interact from now on with the results of the economic data received, with the disappearance of some Brexit clouds.
As for the economic calendar data: From Britain, the rate of change in jobs, average wages and the unemployment rate will be announced. From the United States, housing numbers, building permits and housing starts, as well as industrial production data will be announced.
