The British pound is doing it again. The big currency is very volatile and susceptible to political news. The pound dropped under $1.20 a level not seen since October 2016, as you can see it on a 1-week SimpleFX WebTrader chart below.
What was the reason?
Of course, political. Prime Minister Boris Johnson vowed that if his party loses a decisive vote in parliament today. If the government loses the vote and is forced to delay Brexit again in case of no-deal, Johnson promised to trigger a general election on October 14.
Here’s how the GBPUSD situation looks like on a one-hour chart.
The members of Parliament want to delay the Brexit until January 31, if the government is unable to strike a deal by mid-October.
Margin trading British pound cross-pairs is a must for every reactive trader who likes to capitalize on political news for an indefinite future.