Danske Bank - This week we recommend buying GBP/USD; We still like to buy EUR/USD on dips

Danske Bank - "we currently see that investors increasingly use dips in market's sentiment and in EUR/USD as an opportunity to bring down their short EUR positions in the FX market. We expect the unwinding of short EUR positions to continue and we also expect the Fed's open-ended easing program to support EUR/USD going forward. We target EUR/USD at 1.35 in three to six months time and hence, we still like to buy EUR/USD on dips."

"GBP/USD: – key 1.5912/1.5723 zone to hold for long-term recovery. Strategy summary – buy at 1.5920 for an objective of 1.6747. Place stop at 1.5720."

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Tags: Danske Bank, EUR/USD, EURUSD, GBP/USD, GBPUSD

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