Citi likes buying GBP on further dips in the near-term.
"CitiFX Strategy assigns an 80% probability to a FTA deal. On positioning, benefitting GBP in particular is chronic underweight positioning among investors," Citi notes.
"Our NY trader explains: “Bottom line is people want to own GBP, and they will use any glimmer of hope to do so. The position is fragile to headlines, and illiquid light positioned markets," Citi adds.