Sell GBP/USD with target at 1.2630 - Westpac
|Analysts at Westpac offered a trade plan to sell GBP/USD
Entry: Sell 50% at 1.2900, 50% at 1.2975, Stop: 1.3065, Target: 1.2630
Rationale:
- Looking to sell into any further GBP squeeze into May, this is likely to be a two week strategy
- The 29th May EU-27 (ex UK) Brexit summit is likely to produce a strong stance for negotiations
- UK election support for GBP is likely to wane with over 5 weeks before polls
- Trump Administration reformed tax reform and other initiatives should partially re-instate recently unwound Trump trades
- Rebounds in US yields suggest a further USD rebound
- Pessimism over 1Q GDP likely to have overstated the pullback in activity as earnings hold strong
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