Second referendum has increased probability
As the likelihood of a no deal brexit recedes; currently at 11.63 % the chances of a second referendum increases; now at 42,16%
Earlier I asked why was Corbyn not agreeing to cross party talks? The answer lies in part to the split nature of his party and him not wanting to be associated with bringing about Brexit. However, Corbyn could be holding out for a general election and then a campaign on the basis of having a second referendum for the British people. Do you really, really, really want to leave?
The chances of a no deal brexit are very low now, so longer term GBP longs look good. We saw the volatility of May losing by a historic margin and it was minimal in the FX world. I have seen bigger moves from data points.
The chart below is the GBPUSD monthly chart. A bullish close for January will be putting in a bullish engulfing bar and potentially signalling a double bottom from the 1.2000 region. Sensible place to define risk would be underneath a bullish January close.
