GBP/USD: Directionless Near-Term; Where To Target? – BTMU

BTMU FX Strategy Research notes that with the French elections imminent, the pound may well be directionless as Brexit negotiations probably not formally starting until mid-May.

"Those Brexit negotiations are in full focus now after the UK government formally triggered Article 50 of the Lisbon Treaty to leave the EU. The initial stages of negotiations may well prove important for shaping expectations on the longer-term outcome of the negotiations," BTMU adds.

Further Ahead, BTMU doesn't envisage the start of negotiations as resulting in renewed pound selling and maintains a view of GBP appreciation through the remainder of 2017.

BTMU targets GBP/USD at 1.27 by the end of Q2.

GBP/USD is trading circa 1.2420 as of writing.

Source: BTMU ResearchOriginal Article