Forex Flash: GBP/USD year-end target at 1.64 – Scotiabank

The cross is back to session lows in the proximities of 1.5730 on Tuesday, retracing initial gains after climbing to the area around the key resistance at 1.5800, as risk aversion is reining in the markets.

“The focus for GBP is turning towards Mark Carney’s appearance in front of the Treasury Select Committee on Thursday - the same day as the BoE policy announcement, where we (and consensus) expect no change to the current policy and asset purchase stance. We hold a bullish outlook for GBP, expecting it to close the year at 1.64, believing that currently markets are over pricing the downside risks”, assessed Camilla Sutton, Chief Currency Strategist at Scotiabank.