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17 Mar 2016
GBP/USD still targets 1.3835 – Westpac
The medium term target for the sterling vs. the greenback remains at recent lows near 1.3830, according to Richard Franulovich, Strategist at Westpac.
Key Quotes
“On GBP/USD, 1.40+ unlikely to be sustained as we move closer to the 23 June referendum date is out of the way”.
“At that point GBP should be at levels that off er a multi-month buying opportunity, based on the notion that polls heavily overstate support for Brexit, just as they materially overstated support for Scottish independence and the Labour party at the last general election, the results in both proving to be far from close”.
“GBP a sell here targeting a test of the recent 1.3835 lows, and possibly the 2009 lows of 1.3505 closer to the election, where GBP would be a strong buy”.
Key Quotes
“On GBP/USD, 1.40+ unlikely to be sustained as we move closer to the 23 June referendum date is out of the way”.
“At that point GBP should be at levels that off er a multi-month buying opportunity, based on the notion that polls heavily overstate support for Brexit, just as they materially overstated support for Scottish independence and the Labour party at the last general election, the results in both proving to be far from close”.
“GBP a sell here targeting a test of the recent 1.3835 lows, and possibly the 2009 lows of 1.3505 closer to the election, where GBP would be a strong buy”.