GBP/USD remains a ‘sell on rallies’ – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, recommended selling the pair on occasional up ticks.

Key Quotes

“We are still short GBP/SEK as one of our FX top trades for 2017, but given our constructive short-term view on USD, we would also consider selling GBP/USD if the cross bounces back to the 1.2350 area”.

“In the near term, the Supreme Court’s ruling regarding whether it is the government or parliament that can trigger article 50, which is due any time soon, will be a very important driver for GBP”.

“Needless to say, if the government wins the appeal, the market is likely to price in a higher probability of a hard Brexit and thus drive further GBP weakness”.