GBP/USD: bullish bias as data continues to defy expectations - BTMU

Analysts from The Bank of Tokyo-Mitsubishi UFJ, expect the GBP/USD pair to move with a bullish bias next week, between 1.2300 and 1.2700. 

Key Quotes: 

“Given our bias for the yen and the euro, we will be consistent and assume the same for the pound as well. We would also certainly argue that from a fundamental perspective there are better grounds for the pound to perform well than the yen or the euro. Revised Q4 GDP data resulted in a modest upward revision in the Q/Q rate from 0.6% to 0.7% due to the largest contribution to overall growth from net trade since 2011."

"The devaluation of the pound is playing a role in isolating the UK from the negative implications related to Brexit uncertainty. The House of Lords will hold the Committee Stage review of the Article 50 bill and there may yet be an attempt to add an amendment forcing a parliamentary say earlier than at the very end of the Brexit negotiation period. But we do not expect these proceedings to have any impact on the pound."