GBP/USD to fall back toward the lows hit early last week – MUFG

The British pound was the second-worst-performing currency across G10 On Thursday. In the view of economists at MUFG Bank, GBP/USD could slide toward the last week’s lows.

Pound remains vulnerable 

“Given our view of broader financial conditions tightening further from here, the pound remains vulnerable with the real test coming after the Bank of England’s support for the Gilt market ends next week.”

“We continue to expect GBP/USD to decline back toward the lows hit early last week.”

See – GBP/USD: A return to sub-1.10 levels is a question of when rather than if – ING