EUR/GBP: Still headed for .8500 by end 2012 according to a big German bank
That’s an amazingly bullish view, 6% rise in just over 2 months, but at least they are brave enough to make the call and put their name to it. Their reasoning is based on likely UK issues; a mix of large current account deficit, lack of capital inflow and that the market hasn’t yet reacted to the increased QE by the BoE.
If you like this trade idea, there is a 38.2% retracement level (of the 5-wave upmove from .7750 to .8160) which comes in around .8005. That could be a nice entry level?