GBP/USD: Citi says buying cable (target 1.5390) is best trading idea of the week

In a note published today, Citi recommends buying GBP/USD as this week's best trading idea:

"The minutes of Wednesday's Fed meeting might seem hawkish, but given the economic data that has weakened since that meeting, the market should largely consider that it is out of date.

On Thursday, the BoE may not display a dovish turn, despite Haldane's more balanced recent indications. It would not be surprising to see Weale vote for a rate hike, which represents an upward risk with respect to the basic 8-1 scenario (8 votes for the maintaining of the rates, 1 vote for a rise)."

In light of these considerations, Citi recommends buying GBP/USD at 1.5192, with a target of 1.5390 and a stop at 1.5060.