GBP/USD dropped quite a bit. Is it oversold? The team at ING suggests not throwing the towel too fast.
Here is their view, courtesy of eFXdata:
ING Research discusses GBP/USD outlook and maintains its structural bullish bias on GBP for now.
“After another dismal week for GBP – with the disappointing 1Q UK GDP print all but denting hopes for a May BoE rate hike – there is a temptation to say that this is as good as it gets for the pound.
We think it may be too early to throw in the towel on our bullish GBP outlook; one set of data releases do not alter a medium-term outlook, while the forces that have underpinned a more buoyant GBP in 2018 – namely a re-pricing of a structural Brexit risk premium and lower short-term economic uncertainty – still to some degree remains in place,†ING argues.
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