CIBC Research discusses GBP/USD outlook and maintains a structural bullish bias through the coming months. CIBC targets GBP/USD at 1.33 in Q1.

"Having seen Sterling rally around 13% since no-deal Brexit fears peaked in early September, don't expect a quick run for GBP gains towards the 1.40 area, as the market refocuses on the narrow window for UK-EU trade negotiations. Removing election risk and adding near-term Brexit certainty to the equation is supportive for consumption, thereby easing concerns of BoE policy stimulus in H1 2020. However, trade negotiation headwinds still present a barrier to foreign direct investment in the near-term. As such, look for sub-trend growth and constrained investment inflows to slow the pace for further GBP gains in H1 2020," CIBC adds.