GBP/USD bears on top of the game - ANZ

FXStreet (Guatemala) - Analysts at ANZ explained the conditions surrounding GBP/USD currently.

Key Quotes:

"GBP/USD has been overshadowed on three fronts: political uncertainty, fiscal consolidation and the prospect that the currency’s strength on a trade weighted basis could further delay the Bank of England’s (BoE’s) tightening cycle."

"If the broad based strength in sterling persists, this has the potential to weigh on inflation outcomes and reduce the UK’s international competitiveness. Such an outcome would likely result in the BoE remaining on the sidelines for longer."

"As such, GBP/USD remains vulnerable to further weakness in the near term."