GBP/USD calls are like London busses at the moment. Don’t see one for ages, then three come along at once.
ABN Amro are the latest to slash estimates. They see cable at 1.47 by the end of 2015 and 1.33 by the end of 2016
They’ve also gone short at 1.5670 according to Bloomers.
1.33 seems a bit far fetched even for most permabears (let’s ask Mike
)
In the real world GBP/USD has pulled up at an old friend, the 1.5735 level, after holding and bouncing from the lower bound of the recent range, give or take a few pips.
GBP/USD M30 chart 01 12 2014
There’s still plenty of uncertainty in the pound at these levels so we’re still very much a two-way street. The fact that most of the market has settled on later hikes from the BOE means that that trade is pretty much done and dusted. It also means that if we do see a turn up in the economy early next year, there’s going to be scope for a decent run up in the pound. For the moment though I’m still happy to play that trade in other pound pairs rather than against the buck.
