I must say I am not bearish GBP at all but I seem to be in a minority. The general consensus is that the severe spending cuts will negatively impact on UK growth. My view is that fiscal conservatism is a welcome change in a world of spending gone mad and that the GBP will become welcome as a hard currency amongst various brands of toilet paper.
Lets see how it all pans out, pardon the pun. CitiTechs are going long EUR/GBP at current levels with a fairly tight 170 pip stop and targets at .94, .98 and possibly parity. That certainly is a big call.
