Sell GBP/USD with target at 1.2630 - Westpac

Eren Sengezer FXStreet

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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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