Brexit remains a major obstacle, deal or no deal, but if sterling can ride out the uncertainty before the Oct.
31 deadline, investors may see value in the pound.
Calling a base in GBP/USD is dangerous, given the uproarr surrounding PM Boris Johnson's latest gambit -- suspending parliament.
But despite this week's drop, sterling's moves have been orderly and lack any sense of panic.
Sterling traders and investors have been removing exposure to the pound through 2019 and the market short position is sizeable.
A drop in GBP/USD below 1.20 and a 1.1600-1.1700 print are possible, but once the exit dust has settled and especially if the UK authorities manage the exit with sufficient economic stimulus, the pound could rally, possibly to GBP/USD levels around 1.3000, early in 2020.
GBP/USD Daily Chart: Click here