Morgan Stanley: Selling GBP/USD with a 1.40 target

  • GBP has started the year on a weak footing – a trend we expect to
    continue throughout 2015.
  • Political uncertainty, a softening growth outlook and declining inflation
    are likely to be the drivers of GBP underperformance.
  • Investment inflows to the UK, an important supportive factor for GBP
    over the past two years, are already showing signs of slowing…
  • …leaving GBP vulnerable, especially given the UK’s current account
    deficit.
  • We look to establish medium-term bearish GBP/USD strategies
    targeting 1.40 initially, with potential towards our bear case scenario of
    1.35.
  • Being bearish GBP/USD is one of our top trading ideas for 2015.

We look to sell GBP/USD rebounds into the 1.5300 area, with a stop at 1.5450,
targeting 1.40 initially.

The post Morgan Stanley: Selling GBP/USD with a 1.40 target appeared first on www.forextell.com.

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