Cable longs are MUFG’s trade for next week
MUFG recommends buying cable at spot (1.4162) with a target of 1.4585 and a stop at 1.3950.
“We see the near-term prospects as positive for the pound. While there is danger that the Delta variant delays the full reversal from lockdown, the high frequency data suggests a very strong rebound in economic activity is well underway anyway,” they note.
“GBP is already the second best performing G10 currency this year but we see scope for that outperformance to continue over the coming months,” MUFG writes.