JP Morgan Research shifts to a neutral bias on GBP over the medium-term.

"Turned neutral as solid carry and positive data surprises offset near-term political risks, leaving nearterm targets unchanged. Maintain upward-sloping EUR/ GBP trajectory given fiscal risks around the budget and leadership challenge outcome later in the year," JPM notes.

"EUR/GBP unchanged (2Q 0.87, 4Q 0.89), but GBP/USD lowered mechanically on EUR/USD revisions; 2Q 1.34 (unchanged), 4Q 1.28 (1.35)," JPM adds.