GBP/USD: target: 1.2370? - Westpac

Analysts at Westpac offered a 'Sell' trading plan for GBP/USD.

Key Quotes:

Entry: Sell 100% at 1.2590, Stop: 1.2655, Target: 1.2370

Rationale:

• GBP has rebounded on the back of better pre-Article 50 data and less dovish minutes from the BoE. Realities of Brexit are still likely to dent confidence;
• The triggering of Article 50 is being accompanied by hard line stance from both EU’s main Brexit negotiator Michel Barnier and Germany’s Merkel;
• Ructions from both SNP and a divided Northern Irish Assembly are adding pressures to UK negotiations and the fabric of the UK;
• USD unwinds have returned many currencies toward pre-November election levels;
• The Trump Administration may have failed to enact AHCA reform but may be able to present tax reforms that can gain Congressional approval, even if they are less reflationary.