Forget all the comments that the pound will move lower in the coming months. According to UBS, the pound will edge up against the dollar despite the Brexit talks.

When asked about market expectations that the pound – which currently trades at about $1.20 – could reach $1.10 by the end of the year, Geoff Yu, head of the U.K. investment office at UBS Wealth Management, said that’s not the direction he sees for the currency.

“Completely the other way,” he said.

He told CNBC that sterling will go “above 1.30 heading towards the year-end.”

The pound has depreciated since the Brexit vote and recent comments of a hard Brexit have continued to put the currency under pressure. But Yu sees two main factors supporting sterling in the months ahead, the first being valuations.

“And second if you look at positioning right now, if you look at how currency is behaving even in the short term, feels like the shorts they are getting no joy, they are starting to capitulate, if you look at options market and you look for safe havens around, suddenly the U.K. is not looking that bad.”

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