The British pound extended losses against the Norwegian krone yesterday after Prime Minister Johnson said he would seek a snap General Election, introducing fresh uncertainty into the pound’s outlook. Investors are now awaiting the vote by the UK Parliament, which should be held on December 12th.

The renewed Brexit deadlock comes at a time of global market uncertainties and trade worries. The Norges Bank left its benchmark rate steady at 1.5% at its latest monetary policy meeting, despite expressing concerns over a further weakening krone and increased inflationary pressure.

During the Asian session, the pound managed to pare some losses against the krone, after reaching a low of 11.69 yesterday. As of 7:00 London time, the pair traded at 11.74. Rising oil prices have also supported the Norwegian krone during this week.

From a technical standpoint, the recent move upwards in the GBP/NOK pair looks quite overstretched, as shown by the 14-day RSI that reached extreme overbought levels. Still, in a fundamentally-driven uptrend like this, oscillators can remain overbought for an extended period of time.

Yesterday’s candlestick formed a long lower wick, signaling that the market rejects lower prices at the moment and that buyers are ready to step in at prices below 11.70.

To the downside, we see a short-term support level at yesterday’s low of 11.69, followed by 11.63 that aligns with the 38.2% Fib level and a bullish channel support on the daily chart. Today’s (and end-of-month) profit-taking activities might also put additional selling pressure on the pair.

Buyers should pay attention to the short-term resistance level at 11.765, formed by a recently broken support. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.