In view of Shaun Osborne, Chief FX Strategist at Scotiabank, Cable’s outlook remains bullish while strong support should emerge around 1.3030 in the near term.
“The GBP reached a fresh 2017 high of 1.3114 last week and remains well-supported this morning above 1.30”.
“EURGBP closed lower on the week and looks heavy also. Markets are somewhat indifferent to apparent Cabinet-level differences over Brexit and continue speculation about the future of PM May, perhaps feeling that the Conservatives’ inability to rally around the Brexit plan and their leader mean will stall the process”.
“We remain cautious on broader prospects for the economy and the exchange rate while uncertainty prevails but price action suggests some appetite for the GBP which may extend a little further”.