GBP/USD: Staying Structurally Bullish But Unlikely To See A ‘Smooth Straight Line’ – BTMU

The pound has been on the back foot against the dollar but looks better against the euro. What’s next for cable? Here is the view from BTMU:

Here is their view, courtesy of eFXnews:

BTMU Research discusses GBP outlook and maintains a structural bullish bias targeting the pair around 1.44 by end of Q2, ahead of 1.48 by end of the year.

“We do not expect the MPC to be swayed from hiking rates next month. We expect the gradual easing of Brexit uncertainty along with increased wage growth to be compelling reasons for the BoE to act.

Still, we maintain our bullish profile for the pound given that developments are largely unfolding as we expected. We also do not expect a smooth straight line move higher,” BTMU argues.

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