- GBP has testified of its high beta properties after its rapid recovery in August alongside other risky assets
- Expected downside in EURGBP below 0.85 and upside in GBPUSD above 1.30 to extend
- Maintains long recommendation in GBPCHF
- Main drivers of the bullish view is positive global risk sentiment, lower yields, and improving UK domestic data (demonstrated by recent flash PMI data)
- Sterling to be supported as solid activity data should help the BoE stay in line with their peers
- Incoming fiscal policy with the budget statement is a potential risk
This article was written by Arno V Venter at www.forexlive.com.
