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Economists at TD Securities see scope for a bit more of a sterling squeeze but it will remain limited. 

Key quotes 

“Brexit risks are back in the frame, while the UK economy is in a very perilous position. The UK was one of the last in the region to go into lockdown and has taken only tentative steps to emerge. This suggests a protracted period of recovery.”

“We think GBP/USD might struggle above 1.2180 and think the 1.2240/60 area should provide a fairly solid ceiling.”

“Looking lower, we are keeping an eye on 1.1973 as our next target ahead of our initial take-profit level of 1.1850.”