GBP/USD: Turning Neutral Here But Staying Structurally Bullish; Time For N-Term Consolidation – Barclays

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The pound enjoyed the weakness of the US dollar to stage a recovery. Can it continue? Here is the view from Barclays:

Here is their view, courtesy of eFXnews:

Barclays Research discusses GBP outlook, and adopts a neutral bias around current levels, seeing the pair prone to a consolidation phase in the near-term.

“Our expectations for near-term GBP appreciation materialised after the UK and the EU reached an agreement for a 21-month transition period, while higher wage growth solidified market expectations for a May BoE rate hike.

In our assessment, the Bank is happy with current interest rate expectations following last month’s press conference. Accordingly, we have revised our BoE call and now expect a 25bp rate hike in May 2018 and February 2019 broadly in line with market pricing.

While we continue to envision some GBP appreciation over the forecast horizon, we see little impetus for further near-term sterling gains and are neutral at current levels,” Barclays argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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