GBP peaked at 1.2385 on Monday this week as investors estimated the risk of no-deal Brexit decreasing. Prime Minister Johnson has to go and ask the EU for an extension after the defeat of House of Commons. Currently, the UK Parliament is not in session, so the next volatile period for the pound is likely to return after the snap elections are announced.
So, the big change in sentiment to keep an eye on in the short term is the announcement of early elections or a new referendum. A second referendum will be considered a bullish scenario for the local currency.
Trader Aleksandar Kumanov