Credit Suisse discusses GBP tactical outlook in light of the latest Brexit deal developments.
"Unlike one month ago, a no-deal outcome this month is already highly unlikely. And with the Conservatives riding high in the polls and PM Johnson having made his point both by agreeing a new deal with the EU, he can legitimately claim to be able to offer the public a way out of perma-Brexit uncertainty," CS notes.
"Our base case is that GBP dips will likely be relatively shallow. We would anticipate GBPUSD retracements towards the 200-dma around 1.2720 to find buyers.
Similarly, EURGBP is likely to see committed sellers on any correction towards 0.8800, with many still hoping for a test of 2019 lows near 0.8470 to ensue," CS adds.