NAB Research discusses GBP/USD outlook and adopts a bullish bias through mid-year.
"Along with fast-evolving mutations, which the latest crop of vaccines has, so far, proved less successful in countering, the UK will be a keenly watched experiment of the steps to recovery. The good news is the UK economic data has overall been stronger than expected. Recent World Bank growth forecasts put the UK at a conservative 5% this year, but at a US-beating 5.6% in 2022," NAB notes.
"We suggested GBP’s recent pull-back would hold the 1.35- 1.38 area (low was 1.3670) before rebuilding for renewed assaults on ground above 1.40. Our mid-year target remains an ambitious 1.45. Having failed to make inroads below 0.85, EUR/GBP holds 0.85-0.87 for now," NAB adds.