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Sell EUR/GBP for target of 0.8665 - Westpac
The research team at Westpac recommends to sell EUR/GBP cross with the following parameters
“Entry: 100% at 0.8810, Stop: 0.8870*, Target: 0.8665”
Key Quotes
“Rationale:
- GBP has been sold on the back of the increased political uncertainty generated by the weakened Conservative govt. after last week's election as well as post-election surveys of uncertainty
- The Bank of England is likely to continue its highly accommodative policies when it meets this week, but the context of a resilient economy will continue and a likely point of discussion within the MPC and the threshold for withdrawing accommodation is relatively low according to recent minutes
- Both housing and inflation data this week surprised on the upside and will pressure the covering of GBP shorts if BoE maintain a more balanced stance
- Govt./DUP agreement is likely soon together with the likelihood of more business friendly Brexit negotiations and a dropping of contentious manifesto initiatives”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
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