Forex Flash: GBP/USD to move into a 1.45-1.55 range - RBS

The Sterling has been trading under pressure against the Greenback in the last weeks and after declining around 1350 pips since February 1st high at 1.6335, the GBP/USD seems to have found some support at 1.5000 where the pair built a consolidation movement.

RBS' analyst Paul Robson believes that the GBPUSD is moving into a 1.45-1.55 range, with risks skewed to the downside. "While we believe that GBP fundamentals have deteriorated further, and this will keep the pressure on GBP/USD, we do expect a kicker from a stronger USD tone from concerns over Italy."

"This may mean that EUR/GBP falls at the same time as GBP/USD falls. The USD part has led us to lower our assumed profile for GBP/USD," points Robson. Currently the GBP/USD is itching higher and trading at 1.5070, 0.20% above opening price action. "We now see GBP/USD moving into a 1.45-1.55 range, with risks skewed to the downside," concluded RBS' analyst.

The bank expects the Pound to remain below the 1.5000 level across the 2013. RBS' forecasts are March: 1.4800; Q2 1.4600; Q3: 1.4900 to end the year at 1.4900.