MUFG Research discusses GBP/USD outlook and maintains a long exposure in spot targeting a move towards 1.4585.
"In our latest FX Weekly report we recommended a long cable trade idea and set a target of 1.4585 which would mark a fresh high for the pair since the Brexit referendum in June 2016. The trade idea should benefit from further broad-based US dollar weakness in the near-term following the weaker than expected non-farm payrolls for May," MUFG notes.
"The main risk to our bullish outlook for the pound is posed by the risk of further COVID-related disruption. The ongoing spread of the new Delta variant and the re-opening of the economy is resulting in a pick-up in new cases which have risen to 35,168 over the past week to 7th June from a recent low of 10,624 in the week ending 19th May," MUFG adds.