As negotiations continue towards a Brexit deal, what is the forecast for GBP/USD?
Here is their view, courtesy of eFXdata:
Citi maintains a bullish bias on GBP on the prospects of a Brexit trade deal.
“CitiFX Strategy likes adding on dips in GBP into an agreement but is inclined to “sell the news” on confirmation as bigger picture risks remain for the UK….On the downside, watch 1.3300 again, and 1.3200 below here. Beyond here, there is strong support at 1.3070-80, where the 55d and 100d MAs coincide ahead of the 1.30 level,” Citi notes.
“Flows remain elevated too with our e-Trading colleagues noting 20% higher than average flows vs just under 1.9 times usual interbank volumes yesterday. Banks and leveraged names were net buyers of GBP on platform,” Citi adds.
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