GBP sell-off can extend further - BNPP

Research Team at BNP Paribas, notes that the largest mover Tuesday was GBP, with Cable breaking 1.30 on the downside for the first time since mid-August.

Key Quotes

“We remain broadly bearish on Sterling. Short GBP positioning was squeezed considerably over the past month, from -46 to -34 according to BNP Paribas FX Positioning Analysis, as UK data surprised to the upside.

Our short-term fair value model BNP Paribas STEER™ signalled that this positioning squeeze had pushed GBP beyond its short-term fair value – STEER for GBPUSD currently stands at 1.2896.”