GBP longs under pressure – Nomura

The past two weeks have been brutal for GBP longs, according to analysts at Nomura.

Key Quotes

“Mark Carney opened up a can of worms by suggesting the MPC’s reaction function was less set on an upcoming hike than the market expected, while the data surprises in CPI, GDP and PMIs have further diminished any hopes of a May hike (now just 4.5bp).”

“We think GBP/USD longs are at attractive levels and enter long positions targeting a move to 1.41.”