Tactical GBP Trading into the Referendum - Nomura
Nomura is entering short GBP/USD at 1.40 via digi puts with expiry prior to the referendum date as uncertainty around the vote continues to keep the Sterling under pressure.
"GBP/USD has had some mixed fortunes of late, with downside moves blamed on Brexit and the recent outperformance owing to the USD unwind following the FOMC meeting."
"We expect the UK to vote to remain in the EU and that in the long run GBP will outperform, but during the campaign period uncertainty will remain high and GBP/USD is likely to trade in a very tactical manner with selling pressure around the 1.44 to 1.46 levels."
"We therefore see value in trading the downside of the current range from these levels and recommend entering into a short-term tactical 1.40 digital put in GBP/USD that expires just before the Referendum results are published."
(Market News Provided by FXstreet)