Pound Sterling: Bullish bias building up in six months – Goldman Sachs

Analysts at Goldman Sachs have changed their call on the Pound Sterling from bearish to bullish, now targeting EUR/GBP at 0.8800 and GBP/USD at 1.1900 in the next six months.

Key quotes

"We no longer look for idiosyncratic GBP weakness, as investor sentiment on the fiscal side has improved meaningfully, and are updating both our 6- and 12-month EUR/GBP forecasts to 0.88 (from 0.89 and 0.90 previously) but keep our 3-month forecast unchanged at 0.89 because BoE dovishness could continue for a bit longer.”

"We would consider turning even more positive on GBP if we became confident in a revised approach from the BoE."