GBP/USD, EUR/GBP: Avoid trading the GBP in the short term (GBP/USD target is 1.30 in the event of Brexit) says Credit Agricole bank

Stay clear of the GBP warns the Credit Agricole bank:

"The GBP has remained within the range that has been dominating in recent weeks despite the uncertainty of the referendum. It seems that powerful downward speculative positioning is preventing traders from facing more considerable downside risks.

We remain in the opinion that the GBP will not initiate any significant trend before the referendum result. But the risk linked to Brexit will remain the main driver of the GBP and we do not expect new announcements from the BoE. A positive surprise would probably lead to a rebound.

For now, we recommend not speculating on the GBP, especially in the short term. We remain of the view that the UK will remain in the EU and that the GBP will benefit," says Credit Agricole.