On the euro vs. sterling from UBS Wealth management, looking for GBP to fall in the months ahead on:

  • Brexit back and forth continues, will keep GBP under pressure
  • Disappointment for the markets from the Bank of England next month … UK economic activity is not collapsing but lacks the muscle to trigger a hike in August

For the EUR:

  • European Central Bank continue to manage market expectations on rates
  • And so there is "less scope for the euro to surprise to the downside"

Recommends long EUR/GBP at 0.8800

  • Target 0.91
  • Stop loss 0.8650

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ps. Weekly chart for the pair: