GBP/USD Poised for Upward Move, May Reach 1.2650/2750 – ING Predicts

GBP/USD
  • The economists at ING believe that GBP/USD could trade up to 1.2650/2750 due to the view that European banks, including the UK, are better regulated than those in the US. This is providing some insulation to European currencies.
  • The expectations that the Bank of England can hike rates two to three more times this year are still alive, with which ING disagrees. However, they suggest that the BoE may not push back against these expectations next week, which would see Sterling hang onto recent gains.
  • EUR/GBP is expected to remain steady with a slight upside bias near 0.8800, while GBP/USD could trade up to 1.2650/2750 if EUR/USD manages to break through 1.1100 with momentum

The GBP/USD pair has been hovering around the 1.26 mark lately, and economists at ING have expressed their belief that the pair could potentially move higher, towards the 1.2650/2750 range. The current view that European banks are better regulated than those in the US is providing a cushion to European currencies, including the GBP, and allowing for expectations that the Bank of England could hike rates two to three times this year. While ING disagrees with these expectations, they believe that the BoE may not push back against them next week, resulting in the GBP holding onto its recent gains.

The EUR/GBP pair is expected to remain stable, with a slight upward bias, near 0.8800, as the view of better-regulated European banks provides some insulation to European currencies. Meanwhile, GBP/USD could trade higher if the EUR/USD pair manages to break through the 1.1100 level with momentum.

ING’s economists have provided a bullish outlook for the GBP/USD pair, citing the potential for a boost from the better-regulated European banks and the market’s expectations for a hike in interest rates by the Bank of England. However, they have also warned that these expectations may not be met, and the BoE may not push back against them, resulting in a potentially volatile market for the GBP/USD pair.

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