GBP/USD has tumbled back below the 1.22 area. Economists at Rabobank expect the pair to extend its fall to 1.20 over the coming months.

Brexit carries a long-lasting impact on GBP

“We continue to see risk of GBP/USD dipping to 1.20 on a three-month view. This forecast assumes the greenback retains broad-based strength.”

“In a report published last June, the Bank of England identified two factors which were holding back investment. These were covid and Brexit-related uncertainties. The former has mostly passed. The latter is likely continuing to have an impact.”