Rabobank sees risk of returning of GBP/USD to 1.24 USD

The recent growth of the pound may be explained by the liquidation by speculators of accumulated large short positions and with it no new positive news from the political front in the UK, as the further strengthening of the pound seems unlikely, analysts say.

Despite the fact that currently the market is waiting for the Supreme Court of the country to take an unfavorable decision, this factor has already been calculated in the prices. In addition, it is unclear what position will take Britain into negotiations with the EU, analysts say.

They see a risk of returning of GBP/USD to 1.24 dollars over the next three months and believe that far until you have realistic prospects of keeping the access of the country to the EU single market, the growth of the pair to 1.30 dollars seems unlikely.