From UBS Bank...
QuoteDisliked
We roll over our three-month forecast from 1.99 to 1.97 for GBPUSD, as we see some lasting impact of the anti-carry moves. We also believe that markets have already priced in the good news about the British economy and that it will now show signs of topping out. This adjustment, however, does not affect the 6-, and 12-month forecasts at 1.94, and 1.89. The three-month forecast still underscores GBP strength on the back of high yields and continued economic robustness, as well as USD weakness. We continue to expect the Bank of England to hike one more time, most likely in March, which should move the cable to or above our forecast. Rallies around this hike or data supporting expectations for it make for good pound selling opportunities.