The British pound gave back all of last week’s gains against the Norwegian krone on Friday, falling a hefty 1.15% as markets are reassessing possible outcomes of the UK general election set for December.

Meanwhile, UK Prime Minister Johnson said that Brexit will happen “very fast” and that a trade deal with the U.S. remains possible if his Conservative Party gets the most votes in the upcoming general election. Friday showed that markets are rather skeptical.

The latest Commitment of Traders report, published on Friday and covering changes in positions until last Tuesday, showed that investors were becoming increasingly bullish on the pound again. Net GBP shorts were but by $1.6 billion compared to the previous week, bringing the overall net short to $2.6 billion — the lowest bearish positioning since May.

The short-covering in sterling, fueled by markets expecting that a no-deal Brexit is off the table (for now), likely had a major role in the recent upturn in the GBP/NOK pair. However, Friday’s sharp U-turn in the krone’s strength also aligned with a strong bullish day in oil, with Brent crude prices surging more than 2%.

This week, markets are also awaiting some important reports which may lead to further volatility in the GBP/NOK pair. All eyes will be set on Thursday’s Bank of England inflation reports and monetary policy meeting, which is expected to hold rates steady at 0.75%.

From a technical standpoint, the fake upside breakouts last week combined with a strong bearish divergence between the price and the RSI were powerful reversal signals.

As of 7:00 a.m. London time, the GBP/NOK pair traded at 11.75, with the October 24 low of 11.69 still acting as an important support level to the downside. During the Asian session, the pair mostly remained flat, trading in a range between 11.74 and 11.76. is a news site only and not a currency trading platform. 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.