MUFG Research maintains a tactical bullish bias on GBP/USD, expressing that via holding a long exposure targeting a move towards 1.4125.

The outlook for the pound remains positive – we continue to run a long GBP/USD trade idea...The grounds for this view is the notable shift in the UK rates market after the BoE effectively abandoned the idea of cutting rates into negative territory which has seen the short end of the rates market take out the risk of rates turning negative. The momentum in the rates market was further reinforced by the speed of the vaccine roll-out, with 23% of the population now vaccinated with at least one dose," MUFG notes. 

"A test of the 1.4000 level in GBP/USD looks inevitable now at this stage with the outlook remaining favourable for now," MUFG adds.