GBP/USD: The pound should progress during the second quarter (ING)

ING believes that the GBP/USD should take the upside in Q2 2018 and return to the 1.45 zone.

"All the elements are in favour of a rise of the GBP/USD to 1.45 in Q2 2018.

The Brexit policy, the economic data and the BoE policy have all become positive for the GBP in the short term - helping it to retain its status of "the return of the child prodigy" on the forex.

It seems that a BoE rate hike in May is in the cards. Given the performance of the data, we believe that expectations for two BoE rate increases in 2018 are expected to solidify.

This will be the signal that the GBP should record a bullish movement."