Sell EUR/GBP for target of 0.8665 - Westpac

The research team at Westpac recommends to sell EUR/GBP cross with the following parameters

“Entry: 100% at 0.8810, Stop: 0.8870*, Target: 0.8665”

Key Quotes

“Rationale: 

• GBP has been sold on the back of the increased political uncertainty generated by the weakened Conservative govt. after last week's election as well as post-election surveys of uncertainty 
• The Bank of England is likely to continue its highly accommodative policies when it meets this week, but the context of a resilient economy will continue and a likely point of discussion within the MPC and the threshold for withdrawing accommodation is relatively low according to recent minutes
• Both housing and inflation data this week surprised on the upside and will pressure the covering of GBP shorts if BoE maintain a more balanced stance
• Govt./DUP agreement is likely soon together with the likelihood of more business friendly Brexit negotiations and a dropping of contentious manifesto initiatives”