GBP/USD: Brexit, UK tax concerns probe bulls above 1.2350, PMIs eyed

• GBP/USD clings to mild gains after reversing from 7.5-month high the previous day.
• UKICE reports no likely change to Brexit terms despite UK’s latest hardships.
• Concerns surrounding UK’s tax cuts in upcoming budget, tax probe on Conservative leader also probe Cable buyers.
• Preliminary readings of UK/US PMIs for January, BOE’s Pham eyed for fresh impulse.

GBP/USD grinds near 1.2380-85 as bulls flex muscles ahead of the key UK activity data heading into Tuesday’s London open. Even so, looming concerns over the Brexit and the UK tax, as well as sluggish markets, challenge the Cable pair buyers as of late.

That said, a report from the academic body UK In a Changing Europe (UKICE) unveiled on Tuesday that despite a significant economic hit to Britain from leaving the bloc and falling support for Brexit among the British public, major changes in the UK-EU relationship were unlikely. The news shared by Reuters also signaled no efforts by either the European Union (EU) of the UK to reassess the Trade and Cooperation Agreement (TCA) signed in December 2020, which in turn hints at further deadlock in the key issue and challenges for the GBP/USD pair.