Pound Sterling (GBP) can start to underperform through March, but one has to be patient, ING's FX analyst Chris Turner notes.

GBP/USD might not hold onto gains in the high 1.26 area

"This week UK Prime Minister Starmer will be meeting Trump in Washington and presumably be generating some warm headlines after the UK committed to increasing defence spending by 2027. The UK is seen as a relative outperformer when it comes to a trade war and EUR/GBP risks are probably still skewed lower in the short term."

"However, we still like a lower GBP/USD and doubt it holds onto gains in the high 1.26 area."