TD Securities economists see the possibility of a further tightening of the pound, but this will remain limited.
The risks associated with Brexit are back in the picture, while the British economy is in a very perilous position. The UK was one of the last in the region to lock out and took only interim measures to emerge. This suggests an extended recovery period. “
“We think the GBP / USD might be struggling above 1.2180 and believe the 1.2240 / 60 area should provide a fairly solid ceiling.”
“Looking below, we are keeping an eye on 1.1973 as our next target before our initial profit-taking level of 1.1850.”