GBP may collapse, but not for Brexit!

Certainly, most traders are of the opinion that there are only two ways we can trade GBP in the coming months.

Currency experts are worried about how the final results of the Brexit talks will look, but let's not lie, and the bad and good scenario for GBP is accrued in its price. Whatever the outcome of the deal with Brexit, in the long run, Britain remains one of the best economies in the world, suggesting that sooner or later the country will recover.

What does this mean for GBP? If we have a Soft Brexit Deal and the parliament approves this deal, the GBP will enjoy a short-term gain. If there is a Hard Brexit Deal, GBP will record a downward pulse, perhaps slightly larger than the potential upside.

So far, everything seems logical, but they all ignore the third chance that threatens the British economy, and these are early elections and the gains of the left-wing parties, Brexit's opponents. Early elections can be reached if Teresa May's offer for a deal is not voted in parliament. Weighing the latest election results and the current disapproval of May's policy, analysts expect a stable government to make the mission impossible. This in itself will negatively affect the British economy, as the uncertainty will be many times greater than at present. This will make investors take a more cautious stance on the UK, and GBP will enjoy similar sales to Brexit.

Source: CNBC

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