Currency markets show no definitive breakouts, with GBP/USD facing resistance at 1.2600/2610. ING analysts suggest this area is a key resistance point.
Instead of a strong advance, they anticipate GBP/USD gains will fade, with these levels serving as an area to increase Sterling hedge ratios for the year.
Focus this week will be on UK employment data, CPI, and a speech by Bank of England Governor Andrew Bailey. Attention is expected on employment data, given Catherine Mann's focus on a 'non-linear' adjustment in UK employment.
ING analysts doubt GBP/USD can sustain gains above 1.26 and expect it to trade back at 1.24 by the end of March.