The Boris Johnson Effect may be Fading
EUR/GBP will be highly sensitive to Brexit headlines over the next few months
Share this:
UK Prime Minister Boris Johnson came into office with hopes that he was going to be the one who would negotiate a Brexit deal, as former UK Prime Minster Teresa May ran into a brick wall. GBP responded favorably, as EURGBP pulled back for the first week in 13 weeks! If he can’t, then the UK would leave the European Union and there would be a Hard Brexit. Pages can be written on what a Hard Brexit means. In general, it means that the UK won’t be afforded ANY of the benefits that it currently receives from being a member of the EU, such as free trade. Johnson is hoping to negotiate some of these benefits in favor of the UK before the official Brexit deadline on October 31st, 2019. After only a few weeks in office though, it seems a Hard Brexit is becoming more and more of a possibility. Recently, officials from the EU and member countries have commented that they are preparing for a Hard Brexit.
Focusing on EUR/GBP, if the headlines continue to suggest we will have a hard Brexit, then EUR/GBP will may continue higher. Resistance comes in at recent highs around 0.9325, as the RSI has unwound from overbought levels. Support is the recent double bottom and old support at 0.9090, and then the 61.8% retracement level from the July 25th low to the August 12th high. Horizontal support also comes in around this level.
Source: Tradingview, City Index
EUR/GBP will be highly sensitive to Brexit headlines over the next few months. Watch for whipsaw price action when trading the pair.
UK Prime Minister Boris Johnson came into office with hopes that he was going to be the one who would negotiate a Brexit deal, as former UK Prime Minster Teresa May ran into a brick wall. GBP responded favorably, as EURGBP pulled back for the first week in 13 weeks! If he can’t, then the UK would leave the European Union and there would be a Hard Brexit. Pages can be written on what a Hard Brexit means. In general, it means that the UK won’t be afforded ANY of the benefits that it currently receives from being a member of the EU, such as free trade. Johnson is hoping to negotiate some of these benefits in favor of the UK before the official Brexit deadline on October 31st, 2019. After only a few weeks in office though, it seems a Hard Brexit is becoming more and more of a possibility. Recently, officials from the EU and member countries have commented that they are preparing for a Hard Brexit.
Focusing on EUR/GBP, if the headlines continue to suggest we will have a hard Brexit, then EUR/GBP will may continue higher. Resistance comes in at recent highs around 0.9325, as the RSI has unwound from overbought levels. Support is the recent double bottom and old support at 0.9090, and then the 61.8% retracement level from the July 25th low to the August 12th high. Horizontal support also comes in around this level.
Source: Tradingview, FOREX.com
EUR/GBP will be highly sensitive to Brexit headlines over the next few months. Watch for whipsaw price action when trading the pair.
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD Q4 2026 Outlook: Euro at a Crossroads as Fed, ECB Tighten 9 25 2026
EUR/USD enters Q4 at a pivotal inflection point as competing Fed-ECB policy paths and persistent inflation risks collide with major technical support.
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
Japanese Yen Forecast: USD/JPY 4% Rally Challenges Post-Intervention Downtrend 9 24 2026
USD/JPY momentum has shifted sharply higher, putting a major resistance confluence in focus as U.S. and Japanese event risk builds.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.