Sterling continues to attract sellers even after Tuesday's 270-point slide to 1.20.
Despite an 11% depreciation versus the dollar since the December highs above 1.3500, a return to the landmark 1.1491 October 2016 low is still possible.
Market positioning now probably flat to short, having been net long into March 10.
Again, there is scope to go lower.
Any adjustment higher, to ease the bearish saturation, is being jumped on by the market.
After a 50-basis-point bps Bank of England rate cut, a budget and a perceived late UK response to the coronavirus crisis, sterling has been shunned.
It is likely the BoE will be forced to ease again and ramp up quantitative easing when it next meets.
The government has also stepped up its efforts to help the economy and businesses.
Government-backed loans totalling GBP 330 billion and GBP 20 billion of tax relief measures announced Tuesday will bite, but it remains to be seen how much impact they have nL8N2BA1M2.
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