EUR/GBP appears oversold – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen suggested that the European cross looks oversold at current levels, adding at the same time that GBP should remain under pressure

Key Quotes

“EUR/GBP is trading heavy as cable, even after the government won the vote on Article 50 bill in the House of Commons”.

“According to our short-term financial model, EUR/GBP is oversold, trading 1.6 standard deviations below the model’s fair value estimate of 0.8712”.

“We still expect the GBP to come increasingly under pressure, as the triggering of the article 50 raises policy uncertainty”.