A trade for next week
Mitsubishi UFJ suggests buying EUR/GBP in its weekly FX pick.
They say to buy the pair at spot (0.9100) with a target of 0.9360 and a stop at 0.8925.
"We have been bearish on the pound and on this occasion we are choosing the euro as the currency to sell the pound against. EUR/GBP looks to be on a gradual trend higher since the start of May and we are now close to breaching the resistance trendline from the post-COVID high in March and the high toward the end of June. A break of that resistance would open up a test of that June high of 0.9176," the analysts write.
"This trade should therefore be a more reliable way to express our negative GBP view than versus USD," they add.
