Goldman Sachs have lowered their forecasts for GBP/USD, have a "tactically bearish view"

<p>Goldman Sachs are expecting the Bank of England to remain on hold at coming meetings, through to Q4 2024, saying the BoE has completed its rate hiking cycle. </p><p>GS say they hold a "tactically bearish view" on the pound, citing weaker growth, high inflation, and lower real rates. GS add that if incoming data shows a more negative outlook for domestic growth than even they expect that'll pressure GBP lower still. As it is GS forecast:</p><ul><li>1.18 for GBP/USD on a 3-month horizon<ul><li>from 1.24 previously</li><li>0.91 for EUR/GBP on the 3-month horizon (previously 0.86)</li></ul></li><li>1.20 on a 6-month horizon<ul><li>1.29 previously</li><li>0.92 for EUR/GBP (previously 0.85)</li></ul></li><li>1.25 on a 12-month horizon<ul><li>1.33 previously</li><li>0.90 for EUR/GBP (previously 0.84)</li></ul></li></ul><p>Goldman Sachs flagged the main risk to their projections as incoming data surprising to the upside, which would likely prompt further action from the Bank of England. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.