GBP/USD: Bullish In April; All Cards Falling Into Short-Term Positives – ING

The pound is looking perky and this may happen for a good reason. April is a good month for Sterling.

Here is their view, courtesy of eFXnews:

ING Research discusses GBP/USD outlook and maintains a strong bullish bias for the month of April.

“All the cards are falling into place for GBP/USD to post a bullish move to 1.45 in 2Q18  – which is where our conviction continues to lie. Looking at GBP’s report card in March including Brexit politics, UK economic data and the Bank of England’s (BoE) policy outlook have all turned into short-term positives for GBP   – helping it to retain its status as the ‘comeback kid’ in FX markets.

G10 currency pairs have historically exhibited  strong seasonal patterns in April and at the top of the list is GBP/USD  – which has posted a positive move in April every year for the last eight years.

Under this paradigm,  we expect GBP to move modestly higher – or at the very least stay firm  – against a politically weak USD (GBP/USD riding on the tailwinds of a higher EUR/USD),” ING argues.