Economists at ING have been surprised by Sterling's strength in March. What now? GBP/USD may bounce around in a 1.20-1.25 range.

GBP/USD will struggle to sustain a move above 1.25 in the second quarter

“Based on our EUR/USD view for the second quarter, we suspect GBP/USD may bounce around in a 1.20-1.25 range. Events in the US, however, give us greater conviction that it trades at 1.28/1.30 later in the year as the Fed pushes through with easing.”

“An early pause from the BoE in May could also support the view that GBP/USD will struggle to sustain a move above 1.25 in the second quarter.”