Bank of America Global Research maintains a sell-on-rallies bias on GBP over the coming weeks.

"Developments since the start of the year can be best described as markets pricing out the tail risks from late-2022 rather than pricing in good news. The evidence from both our positioning and survey indicators points to an investment community who has pared back shorts but a) remains bearish; b) unwilling to go long," BofA notes. 

"This provides a ceiling on the extent to which GBP can recover and consequently our bias is to fade any rallies. Nonetheless, whilst our forecast profile projects a weaker GBP into year-end, we think that the lows are in place for this cycle," BofA adds.