GBP: Medium-term bullish view intact for now - ING

With BoE policy tightening, a resilient UK economy and a weak US dollar amid the White House chaos all acting as 'puts' on the pound amid short-term Brexit risks, Viraj Patel, Foreign Exchange Strategist at ING, continue to think risk-reward favours chasing GBP/USD upside over the coming months.

Key Quotes

“We target GBP/USD at 1.45 in 2Q18.”

“Equally, the currency should hold its ground against a strong euro and we look for EUR/GBP to trade within the broad 0.85-0.90 range, with a positive Brexit transition outcome suggesting greater risks of a move to the 0.86-0.87 range in the near-term.”