Saxo Bank’s head of FX strategy John Hardy examines GBP moves in a busy week for the British currency.

Brexit negotiations between the UK and the EU have been progressing, but he says there is still uncertainty over what the situation will look like in 2021 in the aftermath of any proposed deal.

The Bank of England meets on Thursday and there are hopes for a hawkish approach by the central bank, says Hardy.

With UK January earnings and unemployment rate figures due on Wednesday, he adds that the ingredients for a rally in GBP are present.