Rabobank strategists see rallies as selling opportunities and see a downside risk to the 1.19 GBP / USD target.
“Given the magnitude of the economic crisis facing Britain, it may make sense for investors to keep an open mind about developments in monetary policy over the next year in the UK and beyond. The fact that the money market continues to fall in a drop in negative rates suggests that they are doing just that. “
The risks of Brexit and government criticism of its handling of the Covid-19 crisis suggest the potential for further pressure on the pound. We see a downside risk for our long-standing target of 1.19 GBP / USD. “