Morgan Stanley: GBP/USD could rise to 1.2650

According to analysts' forecasts of the bank the British currency should begin to recover from current levels, GBP/USD has all chances to go up to 1.2650 dollars amid rumors that the government is studying alternative methods for Brexit.
According to the Financial Times UK can continue to pay billions to save the reach of the City to markets of united Europe and Theresa Mae assures that the export competitiveness of automakers in the country will not suffer as a result of negotiations for Brexit.
Investors take extremely aggressive short positions in pounds, making the growth of this currency in the short term unlikely, analysts said. In addition, the assumption on the likely impact of the pound on the policy of Bank of England may limit the potential for a further reduction of British currency in the short term, analysts conclude.