FXStreet (Bali) - Brian Martin, FX Strategist at ANZ Research, notes that at present levels, the Sterling has a lot priced in.
"Sterling remains in its established uptrend against the US dollar which has been evident since its low at 1.4860 in July last year. The pound has recently broken above the 1.70 level and very recently has been consolidating these gains. In part, this consolidation so far in July owes to a natural supply of sterling around current levels."
"There has also been some evidence that the pace of the UK's recovery is easing a bit whilst there have been increasing signs that the US economy is gathering momentum. This might start to weigh on cable. Much depends on forward guidance in the US and perceptions of when the FOMC may “upgrade” its guidance about the normalisation of US interest rates."