Terence Wu, an FX Strategist at OCBC Bank, remains most negative on the GBP and believes the cable is a good choice to express USD resilience. GBP/USD trades at 1.2274 as of writing and could lower to 1.2250.
“Still stay negative on the GBP/USD on pessimism over the EU-UK trade talks.”
“Despite the spot being significantly lower than the short-term implied valuations now, we do not expect the pair to be pulled higher.”
“In the interim, the 1.2250 level should continue to attract, with a cap at 1.2350.”
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