The pound rode higher on the news of a transition Brexit deal, albeit leaving open issues such as the Irish border.
Here is their view, courtesy of eFXnews:
BTMU Research discusses GBP/USD outlook in light of this week’s Brexit transition deal and thinks that it confirms being a medium-term GBP bull, while risk-averse conditions are negatively impacting the pair in the near-term.
“The pound would likely have strengthened further if external conditions had been more favorable. More risk-averse trading conditions are acting as a dampener on pound strength in the near-term.
Nevertheless, the latest Brexit developments are clearly supportive of our outlook for a stronger pound this year. We continue to see scope for the pound to strengthen further as Brexit uncertainty eases,” BTMU argues.
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