Reuters dropped shocking results from its poll of forex strategist this morning. The poll revealed that participants see GBPUSD dropping to 1.15 by March of 2017 on the commencement of the Brexit process.
GBPUSD Under Pressure
The results from the Brexit vote earlier this year shocked the market and has been the culprit of the major sell-off in GBP.
The forex strategist see GBPUSD dropping to 1.21 in six month then moving sharply lower to 1.15 after Article 50 is executed.
This is in sharp contrast to the previous month’s poll results where the one month target was 1.28 and 12 month target of 1.27.
GBPUSD Has Potential For Parity?
The majority of the strategist do not see parity as a likely scenario. In fact, 32 of the 39 of the participants did not see parity with either EUR or USD.
Where will GBPUSD go from here?
Today’s US ISM data could push GBPUSD out of its balancing range but the real catalyst could be reaction from the US election results. See GBP to strengthen versus the USD with a Trump win and for the pair to test lows with a strong ISM number and a Clinton victory.