High conviction trade in GBP/USD – Westpac

By FXStreet 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.”
For more information, read our latest forex news. …read more

Source:: FX Street