GBP/USD: Volatility ahead but Range to Hold - Lloyds Bank
Analysts from Lloyds Bank, point out that with major even risks
approaching (FOMC and referendum) volatility in the GBP/USD pair is
likely to remain high but they expect the 1.40 - 1.48 range to hold.
“With major event risk approaching, including June’s US FOMC meeting and the UK’s EU referendum, GBP/USD volatility is likely to remain elevated, although we expect the 1.40 – 1.48 recent range to hold."
“GBP/USD is currently being heavily influenced by three key uncertainties: the market pricing of US policy rate expectations (primarily the FOMC meeting in June); the UK’s domestic economic outlook; and the outcome of the EU referendum (23rd June). Having held important support at 1.40 in early April, GBP/USD appreciated towards 1.48 (close to its year-to-date high)”
“We forecast GBP/USD to move towards 1.47 in June, and 1.52 by end-2016.”