MUFG Research sees a scope for the GBP to extend its gains on the back of yesterday's UK budget.
"The Budget proved more stimulative than expected for the UK economy which should help to support the recovery more as COVID-restrictions are eased in the coming months," MUFG notes.
"The OBR also expressed more optimism over the near-term outlook for growth in the UK. They noted that the rapid rollout of effective vaccines offers hope of swifter and more sustained economic recovery, albeit from a more challenging starting point than back in November... The improving UK growth outlook and reduction in downside risks should remain supportive for the pound in the coming months," MUFG adds.