Mikael Olai Milhoj, senior analyst at Danske Bank, suggests that the EUR/GBP cross is likely move a bit lower towards, but not below, the 0.85 mark in case of an extension of Brexit, as an extension is probably already priced in.

“There also seems to be some support around 0.85. If, against our expectation, May’s deal passes, we expect the cross to move down to 0.83. If the House of Commons supports a no-deal Brexit, we expect the cross to move back to the old 0.87-0.90 range.”