Sterling has recovered from yearly lows, but as the trend remains very weak against the USD Index, there could be scope for further recovery in 2017.
Sterling finds some short term resistance against the EURO around 1.2 but could break through against index weakness.
For the Trade Weighted Indices
The UK Sterling Index has recovered from post-Brexit lows but is still trading at relative lows to the DXY dollar Index. This suggests there may be some more relative strength for GBP versus the USD.
Versus the Trade Weighted Asia Dollar Index the Sterling Index remains strong but far from relative highs back in October/November.