Market chatter suggests some investors and traders are beginning to eye value levels in sterling after the sharp depreciation since spring.
Indeed, a drop to levels approaching the GBP/USD Aug.
1, 2015, low might attract bargain hunters.
But despite the magnitude of cable's decline -- 9% since March -- the growing likelihood of a no-deal Brexit hangs over the market and corrective rebounds are likely to meet strong headwinds.
With the stand-off between the European Union and new British PM Boris Johnson becoming more entrenched, the risks to sterling remain high.
Brussels looks unwilling to shift its stance on the Irish backstop as the Oct.
31 exit date looms, and without a last-ditch attempt to concoct a deal, both the UK economy and the pound stand to be major losers.
The clever money is probably side-lined, waiting for clarity in the Brexit terms.
Near-term adjustments might trouble the 1.2250 high from July 31, but scope beyond looks limited.
GBP/USD Daily Chart: Click here