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According to strategists at Morgan Stanley, buying opportunities remain in the GBP/USD thanks to Brexit negotiations.

Key quotes

“Upcoming negotiations will be all about the Irish border, with the UK trying to avoid Northern Ireland running a different regulatory regime compared to the UK. On the other hand, taking the UK including Northern Ireland out of the single market may suggest a hard border between the Republic and Northern Ireland.  

The softer Brexit is, the less relevant the border issue.  

Despite its rally from 1.27, GBPUSD is still greatly undervalued.  

FDI announcements with foreign companies buying UK-based companies have increased, which seems at odds with domestic investment weakness. Remember, UK business investment is running below the average level for the current stage of the economic cycle. Hence, rising FDI is a clear manifestation of UK assets looking cheap from a foreign perspective.”