If US data today and tomorrow exceeds expectations,  GBP/USD could slump below the 1.20 level, analysts at Société Générale report. 

An imminent return to early 2023 highs of around 1.2450 is implausible

“GBP/USD recovered from a decline below 1.20 for the first time in a month but a return below te psychological level cannot be ruled out this week if US CPI and/or retail sales surprise to the upside.”

“With the BoE nearer to pausing the tightening cycle than the Fed, an imminent return of GBP/USD to early 2023 highs of around 1.2450 is implausible.”

“The 200-DMA remains first support below 1.20 at 1.1944.”