FXStreet reports that MUFG Bank said that the GBP against an equally-weighted basket of the EUR and USD is now only around 1.5% below the post Brexit referendum high from April 2018 which is likely to prove an important juncture for pound performance.

“A break above the post-referendum highs would encourage speculation for further near-term pound gains now that Brexit uncertainty has eased. Whereas if those highs remain in place, market participants could start to more seriously question whether recent pound gains have gone too far.”

“The UK government will set out its plans to begin easing COVID restrictions on Monday. Press reports have been suggesting that the UK government will adopt a very cautious approach. A slower paring back of restrictions could dampen some of the recent optimism over the faster roll out of vaccines in the UK.”