EURGBP is trading 0.3% on the day as the Brexit and elections uncertainty continues to drag the pound lower. The pair created a 5-month low of 0.8574 on October 17th.
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Commenting on Brexit extension this morning, Johnson said that it’s up to the EU to decide whether they want to grant the extension and for how long.
“At the moment it is up to the EU, as you know, to decide whether or not they are going to give us an extension. As things stand we can leave on Oct. 31. We should be leaving on Oct. 31.”
“Of course October 31 is still possible – we could leave on Oct. 31 – unfortunately it depends on what the EU says,” he concluded.
Meanwhile, EURGBP has pushed off the lows after dropping nearly 500 pips in the last two weeks. The 5-month low sits at 0.8574 while 0.8472 acts as a two-and-a-half-year low.
The upside is pretty much unlimited short-term, as the first major resistance is 0.8790 – 0.8830 zone, consisting of 100 DMA and the former swing low of 0.8786.