FX Quant Models: Mexican Peso is overbought, GBP mildly bullish – Londinium FX

Are you caught off guard by the recent sell-off in Sterling and the resulting rise in EUR/GBP pair to August highs? If so, this segment would come as a relief for those who wish to see a correction in Sterling.

Alejandro Zambrano, Chief Market Analyst at Londinium FX details his FX Quant Models which suggests the Mexican Peso is now overbought mainly due to the political situation in US and could lose ground going forward. Furthermore, his model also suggests the GBP/USD is at the equilibrium and there is little reason for a sharp move lower from here. However, there is good news for bulls expecting a minor upside move.