ING Research sees a scope for GBP recovery in the near-term.
"After a set of slightly softer than expected growth figures yesterday, the UK data calendar is set to remain rather quiet until labour market numbers are released next Tuesday. In the meantime, Brexit is creeping back and likely to remain a central theme in the coming days as the UK is reportedly inching closer to using Article 16 to suspend parts of the Northern Ireland protocol," ING notes.
"From an FX standpoint, we think the risks for the pound (which is currently showing no political risk premium) are not as high as in 2018/19 when the risk of no-deal Brexit triggered extended periods of GBP weakness. Given the imminence of Bank of England tightening, we think EUR/GBP will make its way back to 0.8500 by year-end," ING adds.