SEB Research discusses EUR/GBP outlook and adopts a strategic sell-on-rallies strategy on levels above 0.90 targeting 0.86 by year-end.
"The GBP is long-term undervalued against most currencies as Brexit uncertainty keeps the GBP under pressure. Negotiations about the final deal is likely to take two steps forward and one step back before a final deal is settled in Nov.
We still believe there eventually will be a deal as costs of failing are too high. Maintain some patience and buy the GBP vs the EUR on levels above 0.90 targeting 0.86 by the end of this year," SEB advises.