Back
5 Jan 2015
Downtrend in EUR/GBP nearing completion – BAML
FXStreet (Barcelona) - The Analysts at Bank of America-Merrill Lynch feel that the EUR/GBP downtrend is nearing completion, further suggesting to sell GBP versus the USD till this is confirmed.
Key Quotes
“Both our proprietary positioning models and the Elliot Wave count reflect a maturing downtrend in the EUR/GBP that is nearing completion.”
“The initial triangle objective from which a strong rally may transpire is 0.7582.”
“A plausible narrative on timing is that this rally occurs following an announcement of ECB’s QE. We expect this rally to offer an attractive trading opportunity, but until there is stronger evidence that the downtrend has completed, we would recommend selling the GBP versus the USD.”
Key Quotes
“Both our proprietary positioning models and the Elliot Wave count reflect a maturing downtrend in the EUR/GBP that is nearing completion.”
“The initial triangle objective from which a strong rally may transpire is 0.7582.”
“A plausible narrative on timing is that this rally occurs following an announcement of ECB’s QE. We expect this rally to offer an attractive trading opportunity, but until there is stronger evidence that the downtrend has completed, we would recommend selling the GBP versus the USD.”