Danske Research discusses GBP outlook and targets EUR/GBP at 0.83 in 1-month.
"GBP remains fundamentally undervalued although Brexit still makes it difficult to estimate what the fair value for GBP is. Our Brexit corrected MEVA estimate for EUR/GBP is around 0.83; PPP estimate around 0.76," Danske notes.
"We still expect EUR/GBP will trade lower in coming months, as we remain more upbeat on the UK economic outlook than the euro area. We also think a more hawkish Fed and BoE will support GBP. We target 0.83 in 12M," Danske adds.