High conviction trade in GBP/USD - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Analysts at Westpac suggested buying GBP/USD into 1.4330, stop at 1.4150 as a high conviction trade.

    Key Quotes:

    "For a second week in a row we have two bullish arrows on GBP giving us a buy on weakness signal. Our model remains downbeat, but our macro and technical views are aligned. Brexit risk is overdone. UK polls are a poor guide to the national mood if polling for the last general election and Scottish independence are anything to go by.

    PM Cameron should emerge from EU membership renegotiations with a strong hand, helping tip the case in favour of continued EU membership. UK rates markets have gone too far as well, now leaning toward small odds of a base rate cut by year's end (40%). ECB easing risk into March another factor that should constrain EUR/GBP upside."
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