GBP/USD: Scale Into Longs As GBP Remains Cheap & Brighter Eco Conditions Will Re-Emerge - ANZ

ANZ Research discusses GBP outlook and sees the current weakness providing an attractive buying opportunity, advising using that to start scaling into longs.
"The interest rate driven roller coaster rise in sterling has continued and the May 3 local elections could add to political uncertainty in the short term. But we remain constructive on the outlook for sterling and advise averaging into weakness. 
.. European countries want a strong free trade deal and Germany has said that it wants UK financial services. Whilst there will be periods of fraught negotiation, we’re of the view that an economically optimal outcome under differing political preferences will be reached.
Sterling remains considerably undervalued," ANZ argues.