FXStreet reports that economists at Westpac see further tests and a possible GBP/USD break of 1.35 before strength returns later in the second quarter.

“The combination of a burst of warm weather, the first stages of reopening in England, the Easter holidays and the prospects of more easing of restrictions in non-essential retail in coming weeks should help lift sentiment towards the pound through Q2. And this should remain in stark contrast to the developing lockdown situation in France and across Europe.” 

“This more positive domestic backdrop should leave the GBP well supported on dips towards 1.35, and continued outperformance versus EUR appears locked and loaded. The strength of DXY points to risks; we see further tests and a possible break of 1.35 before strength returns later in Q2.”