Analysts at Société Générale discuss GBP outlook. The GBP/USD pair is not out of the woods yet.

Resistance running at 1.2450

“Much stronger than forecast UK services PMI and optimism that inflation will fall sharply by the end of the year have caused the narrative on the pound to improve. GBP/USD is not in the clear however and must hold the 200-DMA at 1.1926 to avoid deeper losses which could still materialise in March.”

“The outlook for wider Fed/BoE policy spread should limit upside for GBP/USD in the medium-term with resistance running at 1.2450.” 

“The new deal between the UK and the EU on changes to the NI protocol will be signed but will not immediately translate into windfalls for the economy and the currency. It has no impact on the BoE and at what level interest rates peak.”