2012.06.08 10:44:45 MARKET TALK: Rally For EUR/GBP On Horizon - Morgan Stanley

0844 GMT [Dow Jones] Rally for EUR/GBP on horizon, says Morgan Stanley, who suggests market players are currently underestimating the possibility of a positive outcome for the euro area, and should the EMU head towards a redemption fund the outlook should improve for the months ahead. "Our position data reveal record long USD and short EUR positions. A reweighting of probabilities should allow currency markets to continue their corrective price action. EUR/GBP has significant upside potential should markets follow our idea of reweighting possibilities," says Morgan Stanley. EUR/GBP trades at 0.8082. (laura.clarke@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 08, 2012 04:44 ET (08:44 GMT)