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Currency Analyst since 2010

BoA: GBP/USD risks correcting lower

Analysts at Bank of America Merrill Lynch say that the Bank of England’s meeting (12:00 GMT) will be a non-event for sterling. In their view, GBP/USD is elevated at current levels and at risk of a correction lower.

“We recommend positioning for a sell-off in GBP/USD, now that the GBP supportive M&A order flow (from the Vodafone-Verizon deal) has passed through the market,” says the bank. The strategists also say that their positioning indicators show that equity and bond investors have a very overweight sterling exposure.

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