Cable is forecast to pick up further pace in the next year and could reach the 1.42 area around H2 2022, as noted in the Quarterly Global Outlook from UOB Group’s Global Economics & Markets Research.

Key Quotes

“The GBP  is second best to the USD this  year within the  Major  FX  space. Supportive factors  include hawkish cues from the BOE, COVID-19 hospitalization  staying low despite a full reopening  and attractive currency valuations.”

“As such, we reiterate our bullish view in GBP/USD  and update our forecasts  at  1.40  in 4Q21,  1.41 1Q22,  1.42 in 2Q22 and 1.43 in 3Q22.”