EUR/GBP faces further upside very near term – Danske Bank

Pablo Piovano FXStreet

Chief Analyst at Danske Bank Jakob Christensen expects the Sterling to remain under pressure in the next weeks.

Key Quotes

“GBP had a volatile session yesterday with EUR/GBP bouncing above 0.88 on reports that David Davis threatened to quit due to a disagreement with Prime Minister May on the ‘Irish backstop’.

“Price action underscores that the current UK government crisis is likely to keep EUR/GBP risks skewed on the upside ahead of the European Council meeting on 28-29 June where ‘progress’ on the Irish border issue has to be made in order not stall the Brexit process”.

“We target EUR/GBP at 0.88 in 1M and 0.8650 in 3M”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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