Analysts expect British pound rally


According to some analysts, when all the unrest associated with Brexit and the volatility in the global financial markets is over, investors will begin to massively buy the British currency. Many analysts believe that the pound is underestimated, and it's time will soon come.

The British currency is trading near the lows of 2016-2017 at the moment. Analysts at the largest Lloyds bank are confident that the difficult political situation in the UK will make the pound once again show a decline. The bank believes that by the end of 2019, the British currency will be at around 1.29 against the US dollar, and it will rise to 1.33 by the end of 2020.

Analyzing the British pound market, other analysts predict a slight increase in the GBP/USD pair. Currently, the pound is trading at $1.2125 against the US dollar. Some analysts recommend selling the British currency.

The bank believes that prospects for the pound's dynamics look uncertain, but urge not to fall into pessimism. Lloyds believes that the situation with Brexit will be resolved safely, but they do not exclude the pound rally in the near future. If a compromise is reached regarding Britain's exit from the EU, the prospects for the British currency will be positive, analysts say. This will give confidence to investors who recall the strong undervaluation of the pound and begin to acquire it, according to Lloyds.

The material has been provided by InstaForex Company -