Societe Generale: There is no doubt about the decline of the pound

The adjustment upward in the pair GBP/USD is due to a reduction in the number of short positions, which nearing its end, say analysts from Societe Generale. Moreover, they say, that the Monetary Policy Committee of the Bank of England is on the edge of monetary stimulus.

Analysts do not believe, that they have reason to change the long-term goals, which include entry in the range 1:20 to 1:25. At current levels they believe, that short positions are attractive in the pair GBP/USD.

Societe Generale supports opening short position in sterling.