The British pound has been under strong downward pressure lately. What is the outlook for the currency in Q1 of 2021? Here is their view, courtesy of eFXdata: “We expect EUR/GBP to reach at 0.96 in Q1 next year, and be at 0.94% in a year’s time. GBP/USD is likely to return to 1.25 in Q1. That’s a 5% fall in the value of sterling in the next few months which will probably see the real effective rate fall to its lowest level ever at some point. Sterling’s biggest source of support is that it is already so cheap and sentiment is already so bearish, about the currency as well as the economic and political outlook. It’s already weaker than relative growth might suggest, or than relative rates might warrant. What it continues to lack, above anything else, is any kind of catalyst for a significant bounce,” SocGen adds. In the meantime, despite an attempt at a bounce yesterday,  GBP/JPY shorts remain our favoured way of expressing a short sterling trade in the near term,” SocGen adds. For lots more FX trades from major banks,  sign up to eFXplus  . By signing up for eFXplus via the link above, you are directly supporting Forex Crunch Kenny Fisher Kenny Fisher Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile View All Post By Kenny Fisher Daily Look share Read Next USD/CNH: Still scope for a deeper retracement – UOB FX Street 2 years The British pound has been under strong downward pressure lately. What is the outlook for the currency in Q1 of 2021? Here is their view, courtesy of eFXdata: "We expect EUR/GBP to reach at 0.96 in Q1 next year, and be at 0.94% in a year's time. GBP/USD is likely to return to 1.25 in Q1. That's a 5% fall in the value of sterling in the next few months which will probably see the real effective rate fall to its lowest level ever at some point. Sterling's biggest source of support is that it is already so cheap and… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
