EURGBP – 8600 Next?

EURGBP – 8600 Next?

The collapse of cable has begun with the pair now touching the key 1.3000 level and further downside is very much likely as capital flees the UK. The suspension of redemptions from three UK property funds is just the tip of the iceberg as UK assets are about to experience a major reevaluation to the downside.

The most natural flow of capital is to the euro which is why EUR/GBP broke out today. We think any retrace in the pair will be shallow and that it will try to move towards the 8600 mark as the investment situation in UK becomes more dire and more investors decide to move their capital out of UK

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