Long-Term Trend (From Weekly Outlook):
…United Kingdom (GBP) Current Interest Rate 0.50%
Sterling will probably remain supported in the short run, as the strength of USD has subsided due to the last NFP release. I still believe GBP may be able to hold its own against USD better than EUR, just because the level of depreciation that took place in 2009.
However, I’d be looking at the recent support areas for GBP/USD closely and possible
enter for LONG GBP/USD positions as we may very well have a few weeks of weak USD.
For the mid to long term outlook on GBP, I’d say it’s neutral.