Bank of America Global Research discusses GBP/USD outlook and likes long exposures around via options current levels.
"Buy GBP/USD Using spot reference: 1.3800 we buy a 3mth ATMF GBP/USD call option which costs 1.35% GBP," BofA notes.
"The removal of all pandemic restrictions by July 19th has been announced by the UK government. Our UK growth forecasts have been conditioned on the assumption of full reopening of the economy by mid-July but this week’s announcement removes residual tail risks that growth may stutter through the summer months. As such, we think this allows the Bank of England a freer hand towards policy normalization and an increasing hawkish tilt," BofA adds.