Is Brexit possible at all? Well, not according to the British Prime Minister himself. Yesterday, when discussing the process and the issue of Northern Ireland remaining in the customs union with the EU Johnson said just that – deal Brexit is virtually impossible. And what were we supposed to do and think after something like that? Of course, as traders we immediately sent the currency into the sell-off and went on with our days. But is that enough? Will that hint Johnson on what will happen if the no-deal Brexit is pushed through? Well, it is possible, but there is a very slim chance that he didn’t know about it already.

Just look at the slide after the statement. And let me remind you that this is just a taste of what can actually happen after Brexit went through. The bad news here is that right now we can start picking the currency up by slowly and gradually shorting it. As a result, we might see improvement in its performance. But who would want to deal with the currency in such a tough spot, especially when it is sure to bring us losses. And once again – this might just be a fraction of what GBP is going to go through after Brexit. Only 5 days to go and with no-deal in sight it is easy to predict that Johnsons is going to have to ask the EU for another postpone. But what will GBP do then?

As always we highly recommend our trading signals as a tool of dealing with the situation.