Back
23 Mar 2016
GBP/USD upside remains unsustainable – Westpac
According to strategists at Westpac, GBP risks testing recent lows in the 1.3830 area in the next months.
Key Quotes
“Still no change in our baseline scenario: 1.40+ unlikely to be sustained as we move closer to the 23 June referendum date”.
“GBP a sell here targeting a test of the recent 1.3835 lows, and possibly the 2009 lows of 1.3505 closer to the vote”.
“At that point GBP would be an attractive multi-month buy, betting that the polls heavily overstate Brexit support, just as they materially overstated support for Scottish independence and the Labour party at the last general election, the results in both proving to be far from close”.
Key Quotes
“Still no change in our baseline scenario: 1.40+ unlikely to be sustained as we move closer to the 23 June referendum date”.
“GBP a sell here targeting a test of the recent 1.3835 lows, and possibly the 2009 lows of 1.3505 closer to the vote”.
“At that point GBP would be an attractive multi-month buy, betting that the polls heavily overstate Brexit support, just as they materially overstated support for Scottish independence and the Labour party at the last general election, the results in both proving to be far from close”.