Citi discusses its expectations around the BoE policy meeting on Thursday.
"Macro data in the UK has stabilized somewhat recently, with Citi’s UK ESI now back in positive territory. This leaves the Citi base case for an August MPC hike intact, which may support GBP.
The apparent shift in Brexit negotiations towards soft Brexit may also support GBP. But it has raised the probability of PM May being challenged/ the UK government changing with new Elections, which may undermine," " Citi notes.
"As GBP/USD’s RSI stays at neutral territory, the pair may range trade between 1.2976-1.3511 in short term, with limiteddownside,"