GBP/USD has been hit by the BOE but has not gone too far. The pair still maintains the range. What are the long-term prospects for the pair?

Here is their view, courtesy of eFXnews:

BNP Paribas Research discusses GBP outlook in light of last week’s BoE policy decision.

“We expect growth in the UK to slow materially more than the BoE projects. It forecasts 1.6% growth for 2018, we expect growth to slow to 1%. As growth slows, we anticipate that the pricing which remains in the market for further BoE rate hikes will be unwound and in sympathy, GBP should continue to weaken.

We note that BNP Paribas FX Positioning Analysis suggests that the market has plenty of scopes to rebuild short GBP exposure,” BNPP notes.

“We, therefore, maintain our bearish GBPUSD view, targeting a move to 1.25 over the next 6 months,” BNPP projects.