The GBP/USD pair has traded as high as 1.1280 at the start of a new week. But sterling gains from the reversal on the top tax rate are fleet, according to economists at BBH report.

The bulk of the fiscal plan remains intact

“The elimination of the top income tax rate was reversed but we see limited upside as the bulk of the fiscal plan remains intact.”

“With policymaking credibility in tatters, we look for an eventual test of last week’s new all-time low near 1.0350.”