Johnson accepted the EU’s granted extension yesterday in a bid to push for a general election in December. This allowed markets to take a breather on at least one of the lingering Brexit risk components.
UK’s MPs rejected BoJo’s bid, however. This left the pound somewhat mixed despite the extension news which should have provided some good gains.
Pound Expected to Remain Mixed, Looking Bearish Short-term
GBPUSD responded to both bearish and bullish headlines, initially driven up but then discounted most gains following the ‘election’ snapback.
Trading within intermediate wave (3) and having potentially ended minute 5 we can now focus on whether the current structure leads to a zigzag correction near 1.27.
