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16 May 2014
GBP/USD a sell around current levels - SocGen
FXStreet (Bali) - Sebastien Galy, Senior FX Strategist at Societe Generale, supports the idea of playing short GBP/USD.
Key Quotes
"The policy stances are similar, but the differences between the UK and US economic outlooks suggest that GBP/USD is a sell around current levels. The UK's strong but lopsided economic recovery, escalating current account deficit, the upcoming Scottish referendum, and the possible EU referendum should keep cable from breaking through the top of the 2009-2014 range. Sterling bulls should consider short EUR/GBP instead for a medium-term trade."
Key Quotes
"The policy stances are similar, but the differences between the UK and US economic outlooks suggest that GBP/USD is a sell around current levels. The UK's strong but lopsided economic recovery, escalating current account deficit, the upcoming Scottish referendum, and the possible EU referendum should keep cable from breaking through the top of the 2009-2014 range. Sterling bulls should consider short EUR/GBP instead for a medium-term trade."