MUFG thinks it's time to sell cable

GBPUSD daily chart

In its weekly FX pick, the team at MUFG Research suggests selling GBP/USD. The pair is trading at 1.3687 and they have a target of 1.3200 with a stop at 1.3950.

"We have established a short GBP/USD trade idea based on our belief that the rate move this week is overdone and based on the prospects of the near-term economic risks worsening. A break of a key technical support level close to spot could accelerate the decline over the near-term," MUFG wrote.

For bank trade ideas, check out eFX Plus.