The pound retreats as traders reposition ahead of a series of UK data. After coming off December’s high of 1.2440, the pair is staging a bounce from the demand zone around the psychological level of 1.2000. The recovery theme remains intact from a medium-term perspective. Though the short-term price action could be choppy as the cable strives to gain a secure footing above 1.2060. 1.2260 at the tip of a previously faded rebound is a key hurdle, and its breach would bring the pair back to its recent peak near 1.2400.
