This year's FX markets have told not to chase big definitive headlines or range breakouts, and this applies to GBP/USD at 1.2600/2610, ING’s FX analysts Chris Turner notes.

GBP/USD to be back at 1.24 by the end of March

"We think this is an important resistant area. Rather than pushing strongly ahead, we suspect GBP/USD gains will fade and these levels will be looked back on as an area to increase sterling hedge ratios for the year."

"Away from the politics of US foreign policy, sterling's focus this week will be on jobs data, CPI and a speech from Bank of England Governor, Andrew Bailey, tomorrow morning. Expect more focus on the jobs data given Monetary Policy Committee former hawk Catherine Mann's focus on a 'non-linear' adjustment in UK employment."

"We continue to doubt that GBP/USD can sustain gains over 1.26 and expect it to be trading back at 1.24 by the end of March."