EUR/GBP, EUR/USD, GBP/USD: Goldman Sachs expects pairs to hit 0.90, 1.08 and 1.30 within 3 months, respectively

Goldman Sachs has revised its GBP/USD outlook following the surprise Brexit:

"We have resisted the temptation to expect a free fall but we expect a second downturn since the BoE's decisions weigh down on the British pound.

Next week, we expect the BoE to provide new guidance regarding the use of conventional and unconventional tools. This will probably be the catalyst for a further decline of the GBP.

We also believe that the euro will fall as the impact of Brexit will be of approximately 0.50% over the next two years (compared with 2.75% in the UK). We also anticipate an increase in QE and a change in the QE distribution key.

Here are our new forecasts for the EUR/GBP, EUR/USD and GBP/USD," says Goldman Sachs.