GBP/USD: Lloyds bank's extensive fundamental analysis of the pound for November 2017

Lloyds Bank shares its fundamental analysis of the GBP/USD.

"The GBP rose after US quarter-on-quarter growth was estimated at 0.4%, which was above market expectations.

The pound, however, has relapsed despite the BoE's first rate hike in a decade. The rise was widely anticipated, and the markets turned to signals on future policy in the Minutes, which was interpreted as being dovish. The GBP was also impacted by local and Brexit political uncertainties.

Meanwhile, the dollar had strengthened.

Overall, we forecast the GBP/USD at 1.27 in mid-2018 and at 1.31 at the end of 2018, but there is a great deal of uncertainty because of UK political difficulties and uncertainty regarding US tax reform."