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According to analysts from Danske Bank, the EUR/GBP pair could rise to parity in the case of a no Brexit deal and could go down to 0.83 if  May’s deal passes.  

Key Quotes:  

“With a medium to long Brexit extension and no reason to believe May’s deal will pass or that cross-party talks will prove successful any time soon, we think it is difficult to see much further GBP-strengthening near term.”

“We have raised our GBP forecasts throughout the forecast horizon and look for EUR/GBP to remain range-bound at 0.85-0.87 in 1-3M. It is more difficult to predict what will happen when we get closer to the new Brexit deadline in October, but as we think a further extension is likely, we expect the cross to remain at 0.85-0.87 also in 3-12M.”

“In case of a no deal Brexit by the end of October, we still expect EUR/GBP to move towards parity. If May’s deal passes, we would expect EUR/GBP to move down to 0.83. We target the cross at 0.86 in 1M and in 3M (prev. 0.83), 0.86 in 6M (0.82), and 0.86 in 12M (0.83).”