Citi discusses GBP/USD technical outlook and flags a scope for further downside in the near-term.
"GBP is challenged from various angles and continues to trade below 1.2400, failing to regain momentum above the 1.2465-75 area...Daily momentum is the most overbought it has been since we went to the peak in GBPUSD in December 2019 at 1.3514...CitiFX Technicals: This Cable Is Frayed. Is It About To Snap?," Citi notes.
"GBP has also dropped sharply in our latest G10 Scorecard and now ranks the lowest among G10 due to poor current account and GDP growth forecasts, along with negative inflation surprises. USD and EUR rank only slightly better, remaining in the bottom 5 with the dollar overvalued and the euro suffering from poor economic data from the region," Citi adds.