TD Securities confidently sell pounds, as it is to reach 1.20 by the end of the year

The pound is substantially stable in the period after the referendum, but this is a temporary phenomenon, say the analysts from TD Securities. At the macroeconomic level risks continue to increase. Some political issues have been resolved more quickly than expected, but the uncertainty remains, they added.
Therefore the stability of sterling has its limits. In combination with careful, yet peaceful tone of the Bank of England, the tendency to fall in economic growth, the increase in inflation and pressure on the balance of payments, the pound has the potential to become even cheaper, say analysts.
They say they sell in any attempt of strengthening of the pound, they believe that its target is 1.2000 by the end of this year.