A bearish trading plan to sell GBP/USD to 1.2630 - Westpac

Ross J Burland FXStreet

Analysts at Westpac offered a bearish trading plan for GBP/USD with an entry: Sell 50% at 1.2900, 50% at 1.2975, Stop: 1.3065, Target: 1.2630.

Key Quotes:

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."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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