The pound sterling has been under pressure, the pair slipped to close to the 1.21 level last week. What is the outlook for the GBP/USD in the short term?
Here is their view, courtesy of eFXdata:
MUFG Research maintains a tactical bearish view on the pair GBP/USD, expecting a breach of the 1.20 level in the short term.
“We remain bearish on the pound sterling, and to see the increase in prospects of decline below the level of 1.2000 against the u. s. dollar. There is an increased risk that investors view the outlook for the UK is more negatively compared to the differenceencourage an increase in the speculation of the sale. The book has been the 2nd worst performing G10 currency this week. We believe that the contraction in growth, reported, Thursday, or 2.0% in q1 and 5.8% in the month of March is to be consistent with the full time of the contraction, or around 20%,” MUFG hours per day.
In addition to this, the UK is in the unique position of having the a considerable risk on the horizon is in relation to the EU’s trade negotiations. We are going to see a test and breach of the 1.2000-level in the GBP/USD is likely to be a short-term perspective,” MUFG adds.
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