GBP/USD has backed down from post-election highs above 1.3500, trading a more moderate 1.2% higher on the day near 1.3335, as post-election realities temper its celebratory gains.
Having run on the promise to "get Brexit Done" and to not seek a extension to the transition period PM Johnson has the daunting task to follow through, which could limit sterling upside.
Johnson's large majority will allow the UK and EU to move onto the transition period nL8N28N3AV, where the UK and EU will negotiate trade, immigration, legal and security issues, among others, by the end of 2020 nB5N27Y032.
With much to negotiate in a short 11-month period failure to resolve all issues by year-end 2020 may once again raise fears of the UK crashing out of the EU with no deal nL4N28N2SM. If the UK requests an extension, it would have to contribute to the EU budget raising the ire of the electorate, and more hard-Brexiteers within Tory ranks.
For now, resistance seems firm at 1.3516 today's overnight high and 1.3618 the May 10 2018 high.
Cable finds support at 1.3284 the 50% Fib of the recent 1.3051-1.3516 rise and 1.3225 the upper 30-d Bolli.
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