Buy the dips in EUR/GBP – Danske Bank
|Aila Mihr, Analyst at Danske Bank, has recommended buying the European cross on occasional dips.
Key Quotes
“In the majors, GBP saw renewed support yesterday following the higher-than-expected CPI print. We still see risks skewed to the upside for EUR/GBP in the near term targeting 0.88 in 1M”.
“However, investors are still very short GBP according to IMM Positioning Update, 20 March, and as the Brexit risk premium priced on GBP seems to have increased in recent weeks, we see little potential for a break above 0.90”.
“Tactically, we still like to buy EUR/GBP on dips, and think the move lower today is a good opportunity to go long for new test of the March high at 0.87875”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.