The pair GBP/USD briefly fell below the 1.20 level earlier this week. The Rabobank economists they expect the pair to fall back below 1.20 in the coming months.
The EUR/GBP cross will be at 0.90 in the middle of the year
“We expect to see further drops below 1.20 for GBP/USD in the coming months.”
“Although EUR/GBP has pulled back from its recent highs, it remains in an ascending channel, and we stand by our forecast for a move to 0.90 by mid-year.”
“On March 15, Chancellor Hunt will present his spring budget. Hunt has given assurances to the market that he will not pull a rabbit out of the hat next month, given the need to reduce inflation. This may prevent any crisis for the gilts market, but suggests the possibility of little change in the prevailing economic pessimism. This is likely to leave sterling on the wrong foot.”
Source: Fx Street
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