By eFXdata — Feb 03 - 09:25 AM
Société Générale Research discusses GBP tactical outlook and flags a scope for a decline towards 1.28 in the near-term.
"The currency with the worst case of Monday morning Blues is the pound. Brexiteer politicians are moving from celebrating the exit to sounding bold as the trade talk verbal jousts begin," SocGen notes.
"The FX market is likely to be nervous and with positioning data still suggesting an excessively long speculative position in the market, sterling is vulnerable. GBP/USD reached 1.32 after the MPC left rates on hold but we still expect a test of 1.28 before long," SocGen adds.
Société Générale Research/Market Commentary