British Prime Minister Boris Johnson’s government will on Monday push ahead with legislation that would lift post-Brexit trade rules with Northern Ireland, fueling further clashes with the European Union.
The law, which would unilaterally replace parts of the post-Brexit deal agreed between the UK and the EU in 2020, is due to go to the House of Commons for what is known as a second reading.
The risk for GBP is that the European Commission has taken legal action against the UK, which could lead to a trade war.
Broadly speaking, the GBP/USD currency pair is at risk of being sold off the highs of the hourly consolidation zone at 1.2300.
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