"The key question is the extent to which this good political news is now already in the price of the pound? The sharp rally in GBP/USD reflects some disappointment with the USD as much as a less bleak near-term outlook for the GBP and, with the better growth and monetary policy outlook in the United States, we expect the USD to now gradually begin to find more investor support. The December 2016 high of GBP/USD1.2775 should provide formidable technical resistance to the recent rally and though the Bank of England on Thursday may try to talk tougher on inflation, no-one seriously expects a rate hike at any point over the next 12 months".