Bank of America Global Research discusses GBP outlook and adopts a sell-on-rallies bias 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 that has pared back shorts but a) remains bearish and 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.