GBP/USD under pressure on ‘Brexit’ – Westpac

The British pound remains vulnerable against the backdrop of rising jitters on ‘Brexit’, suggested strategists at Westpac.

Key Quotes

“Polls validating last week's observation that, "GBP arguably getting ahead of itself in pricing out Brexit risks".

“GBP likely to become exclusively poll in coming weeks, if it isn't already. Our best guess is that the Brexit/uncertainty premium puts GBP fair value nearer 1.40-1.42 where it's worth a buy”.

“Base case is for a commanding  "Bremain" win, in similar vein to the UK general election and the Scottish independence votes, where polls proved to badly understate support for the "status quo".

“Dips into the low 1.40s to be bought but only closer to June 23”.

“Multiple failures around the 1.4720/70 level suggest these are the highs. Initial support though around 1.4330/40”.