FxWirePro: Sell pound targeting 1.376 against dollar

The recent strength of the Pound, which has been fueled by a weaker dollar, an initial agreement between the United Kingdom and the European Union over Brexit bill and two year transition period, and a hawkish Bank of England (BoE) might fade quickly over the domestic political uncertainty brewing in the UK.

In addition to that, the risk of a correction in the dollar is also hanging over the pound, which recently reached our bullish target of 1.43 against the dollar. Our calculations suggest that the pound might undergo a correction in the near term.

In light of that, we would recommend selling the pound at the current rate and higher around 1.42 area with a target of 1.376 and a stop loss around 1.435. The pound is currently trading at 1.413 against the dollar.