One thing is for sure, it does not mean Brexit uncertainty is over just yet
There is certainly plenty of upside for the pound if Johnson manages to get through the legislative hurdles in parliament this week, but what does it truly mean for the pound?
Let's just cut straight to the chase. Whatever happens this week will just be the actual first key step in moving towards Brexit.
The terms of the agreement sets out that the transition period for Brexit will run all the way until the end of 2020. That means another full year of uncertainty, unless the UK can agree on a future trade relationship with the EU.
And if by the end of the transition period, there is no trade relationship negotiated or agreed upon, we essentially just get a no-deal Brexit - just fourteen months later.
What kind of future trade relationship are we talking about?
The red lines currently laid out by the UK essentially means we're likely headed towards a Canada-style agreement - as outlined above.
For all the haggling about a Brexit deal and what not, such an agreement essentially is just a step better than a no-deal Brexit - which will be on WTO terms.
The real issue here is also that of timing. It took Canada and the EU seven years to iron out an agreement and one extra year to ratify it.
For the UK, they are going to have to work all of this one in just eight to fourteen months - which many people are starting to realise is an impossible task.
As such, it isn't going to be plain sailing for the UK economy after a Brexit deal is agreed upon because the future trade relationship still has to be decided.
That means we could be staring down a barrel of years of uncertainty and quagmire until lawmakers sort this out again.
Hence, that is a downside risk that pound traders need to consider when looking at the big picture from hereon. A Brexit deal is great, but it means nothing without establishing a future trade relationship down the road.
Where do we go from here?
There is increasing scrutiny at the moment - especially today - over Johnson's withdrawal agreement bill due to the issue above.
More often than not, lawmakers will be given much more time to digest the bill before put to a vote, so the rush we're seeing is a bit unprecedented but likely intentional.
Although the transition period ends at the end of 2020, any extension to the transition period needs to be applied for before 1 July 2020.
However, as outlined in Johnson's withdrawal agreement bill, parliament does not have the right to demand an extension on this matter.
As such, if the government does not propose an extension, parliament would have no say and the UK will exit from the transition period regardless if a new trade agreement has been established or not.
That essentially means leaving without a deal and on WTO terms, just fourteen months later from today.
There are some lawmakers starting to realise that this is a "trapdoor" towards a no-deal Brexit and this may mess up Johnson's numbers at the end in a vote today.
What does this mean for the pound?
Given the above context, there is certainly a strong argument for near-term upside in the pound. Looking at cable, if all things go well this week, I reckon we could see price move up towards 1.33 to 1.35 levels easily.
However, given time to scrutinise the bigger picture, any upside may be a bit premature because the currency and the UK economy still has to navigate at least eight months of further Brexit uncertainty.
And given the off-chance that it could take multiple years to sort out a future trade relationship, there is no clear light at the end of the tunnel just yet.
I reckon that will give the pound a big reality check in the coming weeks/months. What more with the possibility of a no-deal Brexit still on the table at the end of next year.
