Barclays says EUR/GBP shorts are the best trade this week

Consider selling EUR/GBP this week, advises Barclays Capital in its weekly FX pick to clients.

The pair is trading 20 pips higher to 0.6965.

They see macro and technicals driving the trade.

"Our expectation for better-than-expected UK retail sales and the recent investor re-focus on fundamentals support our view for moderate EURGBP downside," Barclays adds.

"Technically, our bearish conviction for EURGBP was encouraged by the break and daily close below the 0.6985 range lows," Barclays argues.

"We would look to fade any upticks against resistance in the 0.7225 area and expect further downside over the coming days and weeks. Our initial downside targets are towards the 0.6770 swing target. Further out we are targeting the 0.6535 range lows from 2007," Barclays advises.

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