GBP/USD staged a decisive rebound on Monday and broke above 1.23. Economists at ING expect cable to see a brief spike into the 1.2500/2550 area on a move through 1.2400/2410.

Sterling seems to be ignoring Northern Ireland politics at the moment

“It has been interesting to see sterling running with a high correlation against the renminbi. The current short-term recovery of the latter can see GBP/USD recover a little, where a move through 1.2400/2410 could see a brief spike into the 1.2500/2550 area. Those could be some of the best cable levels for some time.”

“Sterling seems to be ignoring Northern Ireland politics at the moment – perhaps because Conservative backbenchers and also US politicians are leaning on the UK government not to go ahead with unilateral actions on the Northern Ireland protocol.” 

“EUR/GBP to remain gently offered, but 0.8430/0.8400 may well be the best sterling levels to be seen for a while.”