GBP - BULLISHThe focus for GBP is likely to be firmly fixed on the coronavirus outbreak now that the UK and EU have reached a Brexit agreement.
Of course, although the market's focus on Brexit is now likely to markedly fade, the UK and EU's relationship will still remain of importance for GBP. This has been highlighted in recent sessions by the rise in UK/EU tensions over coronavirus vaccine supplies and distribution.
Regarding the UK's coronavirus outlook, this remains encouraging with the UK's vaccine program having administered at least one dose to almost half of the UK population. Given the current success of its vaccine program, the UK is now in the early stages of lifting lockdown restrictions.
While the UK's coronavirus outlook is improving, we expect GBP to remain well supported, resulting in a bullish fundamental outlook.
