Bank of England Governor Mark Carney ended speculation that he would soon resign his post on Monday when he announced that he’ll extend his term to June 2019. The market saw this as a stabilizing force for GBP which has been rocked since July when the U.K. voted to leave the EU.
Brexit continues to weigh on the Pound due to the uncertainties that have arisen from triggering Article 50. Inflation is expected to increase above the 2% target during 2017 which will put additional pressure on the BoE to raise rates and strengthen the Pound.
Where will GBP go from here?
GBP might be able to hold above 1.20 depending on the outcome of the US elections and developments in the EU. The USD is expected to slide from the uncertainty of a Trump victory or if Clinton wins but continues to be bogged down by investigations.
Expect GBPUSD to test 1.25 if uncertainty rises in the US due to the election be but aware that the moves could be drastic so keep your leverage low.