Citi recommends selling EUR/GBP from 0.7367, with a target at 0.7250, and a stop at 0.7430
Analysts at CitiFX recommend selling EUR/GBP (spot at 0.7326).
"EUR likely to be vulnerable approaching ECB. While it is likely premature to expect action from the ECB, some jawboning can be expected which is likely to add to expectation for additional easing in December. With EUR better supported by negative developments elsewhere than underlying conditions in the euro zone, this should translate to weakness on the crosses.
GBP is an attractive vehicle for EUR shorts. EURGBP recently failed at the May high and upward momentum looks overstretched, so technically a dip may be forthcoming. Weekly momentum on cable looks to be turning higher, painting constructive short-term picture for GBP on a technical basis.," Citi says as a rationale behind this call.
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