SEB recommends buying the British Pound

According to currency analysts SEB, investors should buy the British currency. The Bank recognizes that the British pound has important long-term goals, but the combination of stronger data in the first and second quarters of this year, and a large amount of short positions, stackable currently in the pound, may be key to improving its dynamics in the near future. As noted in the bank, a breakthrough level stg0.8650 in a pair euro / pound will lead to the absorption stops. Bank strategists believe that by the end of the first quarter of 2010 euro / pound will fall to a level of 0.85. Now the euro / pound is trading at around 0.8661. In addition to selling the euro / pound, the bank also recommend buying the British pound against the Canadian dollar in anticipation of weakening of the Canadian currency.