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Alan Collins is buying EURGBP as he believes it is becoming overstretched despite weakness in the pound.

All the uncertainty around the UK’s future as a member of the EU has resulted in selling of the pound, and while things are likely to settle in the coming days, Collins says the current uncertainty is encouraging a safety first attitude among investors.

This is most visible in GBPUSD, but is also likely to be reflected in the euro, Collins says. He is looking to go long at the .7875 area and on any dip to .7855. His targets for the trade are .7912, .7933 and .7955 with a stop below .7831.